Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

<p>OBI Pharmaceuticals (4174:TT) is a biotechnology company developing treatments for cancer. The company has been mired in controversy for the past several months with the failure of its lead compound in a late-stage clinical trial and accusations of insider trading. The stock has declined by 21% YTD, yet we think it continues have significant downside risk. The current valuation of US$2.5 billion (11x+ cash) values the company's technology at US$2 billion+: the highest among "pre-revenue" Taiwanese biopharma companies. We think that the commercial prospects for OBI’s product candidates are less promising than assumed given the failures of similar compounds in clinical trials. The company's Chairman faces potential legal liabilities in both the US and Taiwan. His loss would be a significant blow to the company.</p>

OBI Pharmaceuticals (4174:TT) is a biotechnology company developing treatments for cancer. The company has been mired in controversy for the past several months with the failure of its lead compound in a late-stage clinical trial and accusations of insider trading. The stock has declined by 21% YTD, yet we think it continues have significant downside risk. The current valuation of US$2.5 billion (11x+ cash) values the company's technology at US$2 billion+: the highest among "pre-revenue" Taiwanese biopharma companies. We think that the commercial prospects for OBI’s product candidates are less promising than assumed given the failures of similar compounds in clinical trials. The company's Chairman faces potential legal liabilities in both the US and Taiwan. His loss would be a significant blow to the company.

Taiwan

OBI Pharma Inc manufactures anti-infective and immunotherapy drugs and develops cancer and infectious disease therapies.

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OBI Pharma Inc (4174 TT)

Fasten Your Belts: Air Pockets Ahead

OBI Pharmaceuticals (4174:TT) is a biotechnology company developing treatments for cancer. The company has been mired in controversy for the past...

Kemp Dolliver, CFA

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