Q: Hi folks, received shares from the spin-off, what are your thoughts on the company? Add or sell the position? Thanks.
5i Research Answer:
GRAL is the biotech cancer detection spinoff from ILLM. While we typically like spinoffs and think they can do well to unlock shareholder value, ILLM faced antitrust issues when it acquired GRAL and was fined and forced to divest GRAL. Recent growth has been strong but it is highly unprofitable and has negative cash flows. We would say HOLD to see how the company initially performs being such a new listing.