Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Following on your favourable appraisal last week of this company, I wonder if you have a method of forecasting the share value based on the addressable market of its key products and the number of shares on the market. The OCC has suggested a US market value of $1.6bn if approval is given. OCC has 200m shares (I believe). This would imply revenue per share of some $7 per share. If costs can be managed, a $5-7 share price wouldn't be out of the question, would it?
Hi Sandy,
As you say we did like Orthocell Ltd (OCC) last week and the market listened, at least short term, sending this $380mn Australian biotechnology company up +7.5% in a quiet market although we note 10% swings are common place for OCC.
This is the quandary on biotech’s, there are lots of assumptions involved, including the view that the U.S. market for peripheral nerve repair is exceeds US$1.6 billion annually but here are some back of the envelope calculations:
We like OCC initially looking for new highs up towards $2, but, we are always nervous towards Biotech’s.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
