Q: ESSA Pharma is just one example of an exciting pharma in a topically interesting (prostate cancer, aging population…) area but with impenetrable valuation characteristics. Can you say whether this stock’s prospects are worth its price? Are there other early-stage pharmas you like?
5i Research Answer:
Market cap is now $440M, after a nice 50% gain already in 2024. The company has $148M cash, and cash flow was negative $20M in the most recent 12-month period. It has no reported sales. Its clinical portfolio looks decent, though most trials are only Stage I and Stage II. More time (and capital) are going to be needed here. Insiders own 4.6% directly and have been buyers. BVF Inc owns 19.8% and Bellevue Group owns 18%. We don't really follow a lot of early stage names (risks are too high for our general audience). IDYA is interesting. Also RCKT and CERT.