Proteomics International Labs Ltd (PIQ)
Hi! Could I please get some advice about PIQ which as a biotech company has a great product but the share price is languishing well below its recent SPP price? Your thoughts? With thanks David
The Latest Q&A
Answer
Hi David,
Proteomics International Labs Ltd (PIQ) it’s a small $53mn biotech company that develops diagnostic blood tests using protein analysis (proteomics) to detect chronic diseases like diabetic kidney disease early.
In June they raised $12mn, comprising about $4.5 million via placement, and $7.5 million via the Share Purchase Plan (SPP), plus $0.5 million from a directors/management placement. The stock was placed at 37c and as you say its trading today at 32-33c.
The big issue for PIQ is the current cash burn; PIQ has roughly 11-12 months of cash runway before it would likely need to raise more funds, assuming no change in cash flow or additional revenue. PIQ aims to boost revenue through the commercial launch of its flagship diagnostic test PromarkerD and by expanding its portfolio with new tests for diseases like endometriosis and esophageal cancer but the markets clearly sceptical.
- The product may be excellent, but the financials remain a worry.
