Our market cap is sitting at around £65m. I understand that there’s a high element of risk in the sense that so much rides on the quality of the MED 3a results. However, IMHO the risk:reward is ridiculously high.
Why is this?
My former working life was centred around the Pharma/Biotech sphere. My ‘new life’ is centred around the Tech startup sphere. In this sphere, initial potential demands securing adequate early stage funding in order to launch what’s known as a minimal viable product. In the UK, this funding market has been getting a lot better than it was just 5 years ago. However, the risk tolerance still remains far lower here than in the USA. So much so that if you can raise say £500,000 in London, you’d likely be able to raise $2 to $3m in Silicon valley.
I think a severe lack of risk tolerance in the UK is why our market cap is crazily low. FUM is after all a start-up. Indeed, this is in a sense backed up by the fact, that despite some good UK PR, at present, we only have one institutional investor (LO). The likes of Neil Woodford’s (formerly risk tolerant) fund being hammered, really hasn’t helped matters.
However, the situation has the potential to reverse quite rapidly IMHO. Firstly, if James Barder & Co present FUM well at the large US sexual health conference in October, this could result in very favourable US PR. If American investors were to see what I would term “a shockingly attractive risk:reward ratio” in this small startup British stock, you could see a rapid rise as a consequence. This, as in the America, you just wouldn’t see risk:rewards anywhere as attractive as they are here. America has a very established long term investment structure for both risky and less-risky proposals. As a consequence, most innovation takes place on their shores.
Secondly, if the 3a data is good or excellent, that ‘high risk’ is immediately markedly lowered, thus opening up to a much larger plethora of investors (both private & institutional). This is before you take any large Pharma interest into consideration!
The above is why, like Daring Aberdeen, I’m in to the (hopefully sweet) end.