FBIOP

Electrical-Craft-571

PRV just sold for 205 million, the FBIOP has jumped a couple percent today, how soon are we going to see 25?

BiotechJoy

A combination of things: 1. The nature of their business is quite complicated (multiple private subsidiaries, some of which have out-licenced parts of their pipeline) making it hard to value at first glance. 2. One of their biggest subsidiaries was Checkpoint, which got hit with a CRL in late 2023, which set back one of their big revenue sources. They later got approval in 2024 and were sold off this year which bolstered the balance sheet, but I think confidence took a bit of a hit with the delay. 3. There are 2 classes of shares, the Preferred shares pay a perpetual dividend (costs about 600k per month) but it has been paused since last July. While these distributions are paused, the company can't raise cash via offerings under S-3. They also have some debt. 4. Biotechs under 100M mc just don't get a lot of love! However. This all said, the number I gave was net of debt. They have bolstered their balance sheet, and if CUTX-101 is approved and the PRV is awarded, that is a huge income and will make it very likely for FBIOP dividend to be restored (it is also a requirement that the debt is paid off via proceeds of the PRV sale). So this would significantly improve confidence, and also (the bit I didn't mention) buy a significant amount of time for DERM's launch of Emrosi to gather pace and tip them into profitability (projected to happen later this year). I think upon achieving a tidier capital structure and more cash in the bank, the market will take a more appropriate valuation.