Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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Equity Bottom-Up

Pharmala Biotech Holdings  / Equity Bottom-Up

<div><ul><li>Supply leadership moat is quality and data, not licensing head start. PharmAla supplies ~35 clinical trials globally, including Johns Hopkins, Harvard, Yale, the VA, and now the US military, with ~30% repeat customers.</li><li>Kadysh argued that the durable advantage is a regulator-accepted dossier (stability, manufacturing quality) and finished drug product rather than bare API, which raises the switching burden mid-program.</li><li>The drugs-for-data arrangements are screened and contractually specific. Kadysh explained that PharmAla secures non-exclusive, perpetual licenses to granular safety and efficacy outcomes, prioritizing novel indications that add to the scientific literature while leaving publication rights with investigators.</li></ul></div>

Supply leadership moat is quality and data, not licensing head start. PharmAla supplies ~35 clinical trials globally, including Johns Hopkins, Harvard, Yale, the VA, and now the US military, with ~30% repeat customers.Kadysh argued that the durable advantage is a regulator-accepted dossier (stability, manufacturing quality) and finished drug product rather than bare API, which raises the switching burden mid-program.The drugs-for-data arrangements are screened and contractually specific. Kadysh explained that PharmAla secures non-exclusive, perpetual licenses to granular safety and efficacy outcomes, prioritizing novel indications that add to the scientific literature while leaving publication rights with investigators.

MDMA: Key Takeaways from WTR Insights Conference