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Tekmira is significantly undervalued, with 3 RNAi products in the clinical pipeline or about to start clinical trials, to include a product aimed at a strain of Zaire ebola under a DOD contract worth up to nearly $170 million. Tekmira's business model is well thought out -- use revenues earned from its RNAi delivery technology to fund its clinical trials and R&D. Tekmira has 5 additional siRNA payload compounds to pick from Alnylam's siRNA technology under very favorable terms. Each of those picks are well worth $5 to 10 million. Tekmira has collaboration or license agreements with some big pharma, to include Merck, Bristol Meyers Squibb, and Takeda. At about $28 million market cap, it's a screaming buy. The only real overhang/cloud is its ongoing litigation with Alnylam, which hopefully will be resolved sooner rather than later -- this will resolve the protection of Tekmira's lipid nanoparticle (LNP) intellectual property.
RNAi is an extremely complex field, and I don't claim to have a good understanding of the intellectual property issues currently at the heart of Tekmira's valuation. What I do see is that the company has lost more than half their market cap since they began trading on the Nasdaq last November, and the current 29M cap seems better suited to scams and companies on the verge of bankruptcy. But no matter whose side you take in the controversy between Tekmira and Alnylam, it seems that Tekmira is being undervalued considering the weight of their contribution to the field thus far. They also have three proprietary RNAi compounds in or on the verge of clinical development for diverse indications. Cash was 12M as of the end of 2010 and their quarterly burn rate is unclear, which may become an issue. A pervasive negative attitude about RNAi in recent months may also be dragging down the share price. Portefeuille obviously believes in this stub strongly, and I think this one may be more FOLD than PARD.
see this post.http://caps.fool.com/Blogs/tkmr/558889.
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