Business Perspective VS Shareholder Perspective
Post# of 30028
Posted On: 09/04/2014 7:14:30 AM
Business Perspective vs. Shareholder Perspective
Last night I spent some time evaluating my investment in AMBS.
It occurred to me that I needed to evaluate this company and its current moves from a different outlook.
If I was BP would I want AMBS to succeed? The short and simple answer is no. I will outline the reasons.
1) It will cost 5 to 10 mil per phase of study to run LYMPRO. A possible expense of 50 to 100 mil to use it on multiple Phases.
2) Currently AMBS has 2 mil in available funds with about 18 mil from LPC. This is seems like a small amount to companies worth billions.
3) AMBS has almost maximized its current amount of authorized shares, 780 mil of the 1 bil.
Why would they be willing to set up a partnership and keep a company running when they can buy the entire asset of LYMPRO for a song, time is the greatest friend big pharma has right now.
AMBS business perspective.
1) It has secured financing to continue to operate until 2016.
2) It is starting to get noticed in the scientific community.
3) If they authorize more shares it gives them better partnership opportunities and screams to Big Pharma that they have more time and a fire sale will not be happening in the near future.
4) With BD approving their test and the start of CLIA ( Barring Good SPEC ) competition of amvid will be on the market sooner than later.
This is a million dollar opportunity that should be leveraged. With all the progression it has made BP is going to be forced to either partner with AMBS or be left in the cold. Greed will set in. Eli Lily may try to protect their product, or another BP may see a window to cut their ALZ costs and take some of the market share.
I was leaning towards voting no on the proxy, but I am changing my mind. I would rather give AMBS leverage against BP. From a business perspective it makes perfect sense.
Just my two cents.
WD
Last night I spent some time evaluating my investment in AMBS.
It occurred to me that I needed to evaluate this company and its current moves from a different outlook.
If I was BP would I want AMBS to succeed? The short and simple answer is no. I will outline the reasons.
1) It will cost 5 to 10 mil per phase of study to run LYMPRO. A possible expense of 50 to 100 mil to use it on multiple Phases.
2) Currently AMBS has 2 mil in available funds with about 18 mil from LPC. This is seems like a small amount to companies worth billions.
3) AMBS has almost maximized its current amount of authorized shares, 780 mil of the 1 bil.
Why would they be willing to set up a partnership and keep a company running when they can buy the entire asset of LYMPRO for a song, time is the greatest friend big pharma has right now.
AMBS business perspective.
1) It has secured financing to continue to operate until 2016.
2) It is starting to get noticed in the scientific community.
3) If they authorize more shares it gives them better partnership opportunities and screams to Big Pharma that they have more time and a fire sale will not be happening in the near future.
4) With BD approving their test and the start of CLIA ( Barring Good SPEC ) competition of amvid will be on the market sooner than later.
This is a million dollar opportunity that should be leveraged. With all the progression it has made BP is going to be forced to either partner with AMBS or be left in the cold. Greed will set in. Eli Lily may try to protect their product, or another BP may see a window to cut their ALZ costs and take some of the market share.
I was leaning towards voting no on the proxy, but I am changing my mind. I would rather give AMBS leverage against BP. From a business perspective it makes perfect sense.
Just my two cents.
WD
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