Originally Posted by
MAC
Here are six quick reasons why PEB will prosper better than other biotech companies on the NZX and ASX;
1. The medical sector will always gravitate toward solutions that improve the health of patients.
It would seem that everything is in PEB’s favour, not only have the clinical trials been completed and now some of the user programmes also, but that these trials and programmes have demonstrated PEB’s own research that cxbladder represents a technological leap forward in the diagnosis of bladder cancer.
2. The insurance sector will always gravitate toward lower cost solutions which are equivalent to or better than existing medical practice.
PEB have established price points which allow for overall economic benefits to be realised by health organisations. They have been working with DHB’s to demonstrate the cost effectiveness of using cxbladder in reducing the cost of present diagnosis work up costs. Mid Central Health are presently performing a 400 test economic evaluation to this ends.
3. Competitive advantage
The superiority of cxbladder over its partial competition NMP22 has been researched and presented by PEB, and now demonstrated through clinical trials and reinforced through user programmes and independent research.
4. Barriers to entry
It takes an enormous amount of time (years) to develop a new technology, to complete clinical trials, and to gain regulatory approvals. NPM22 has been around for 10 years now and it has taken the market this long to come up with a leap in new technology, this being cxbladder. It takes a big leap forward to make the research and development time and effort feasible, equivalency or a small leap is not good enough.
5. Recognition
There is patient side demand for cxbladder. There is also no better exposure to practitioners than being published in the journal of urology, and as I understand the user programme results are also due to be published soon also. This combined with the above and the US commercialisation plan PEB have must make cxbladder a marketing manager’s dream.
6. Valuation
PEB by recognised FA is undervalued, possibly due to no analysts yet covering the stock, possibly due to the complexity of research required, possibly due to not being dual listed, possibly due to the market awaiting first US sales results. My feel is that PEB has de-risked so quickly that HY14 reporting of first US sales will be a point of inflection up toward fundamental valuation.
Disc: BUY