4basebio Share Discussion Threads

[muffster] 08/10/2021 17:40

Fair point, I was being overly pessimistic as my history with bio companies has been littered with cash calls.

[buzzzzzzzz] 08/10/2021 09:42

Absolutely not!

Do your research before you make such unsubstantiated comments.

Company has approx £12m in cash and a loan facility from parent company in excess of £20m.

Highly likely will be generating income some time next year from DNA sales!!

[muffster] 08/10/2021 08:21

Probably need a cash raise though before profitable

[buzzzzzzzz] 30/9/2021 18:37

Touchlight (synthetic DNA manufacturer
with FY 2020 sales of £10.6m) recently extended its private financing round to $125m, and while
we do not have visibility on the pre-money valuation, we estimate it is in excess of $500m.

It will take some time for 4basebio to build up its customer base, and so it is unlikely that it will be able
to generate significant revenues in the early stages of GMP DNA production. However, its new facility
will provide it with both huge manufacturing flexbility and very large DNA production capacity.
The cell and gene therapy space is undergoing accelerated expansion – in January 2019, the FDA
announced that from 2020, it anticipated that it would receive more than 200 CGT investigational
new drug (IND) applications per year, in addition to the 800 active cell-based or gene therapy INDs
that it already had on file at the time. The cell and gene therapy catapult UK preclinical research
database identified 875 project in 2018, compared with 720 in 2017 (a growth of 20%, and a number
which has undoubtedly grown since). These developers and their growing pre-clinical and clinical
product ranges will all require DNA, and they represent an enormous customer pool that 4basebio
can tap into, which presents it with a ‘land grab’ opportunity, in our view.
If 4basebio can build relationships with these parties now, while most cell and gene therapies are
in the pre-clinical stage of development, it can secure a very stable base of recurring revenue – once
a company incorporates 4basebio’s DNA into its construct, it will likely use the DNA throughout the
entire clinical trial stage and beyond.


This model of ‘sticky’ recurring revenues is similar to that of Maxcyte (AIM: MXCT), which pioneered
the development of a non-viral cell- engineering platform – Flow Electroporation®. MaxCyte
provides its technology, including instruments and single-use disposables, to customers to aid in
drug discovery and development. It also licenses the technology to companies that can use it to
reprogramme cells to be used as therapies, for which MaxCyte receives upfront and milestone
payments, as well as royalties on future product sales. MaxCyte now has a market cap of c.£1bn
(Figure 5) and trades on FY 2021 and FY 2022 EV/Sales of 36x and 28x, respectively.


These valuations are not out of reach of 4BB.

There is no reason why 4BB cannot reach £25m revenue which could push the valuation to that of Touchlight.

[doc robinson] 30/9/2021 13:00

All very positive buzz wii tuck away and come back next year when I assume the predators will start circling.

[buzzzzzzzz] 30/9/2021 10:23

Promising interims but recent manufacturing news is key event
4basebio’s half-year results for period ended 30 June 2021 reflect consistent progress towards its
main objectives. It generated revenues of £0.18m with a pre-tax loss of £1.85m (H1 2020: £0.38m,
+385%) and ended the period with £12.1m cash, providing it with a cash runway beyond 2023.
The recent start of the development of a Good Manufacturing Practice (GMP) facility is a pivotal
event, demonstrating that its validated lab processes can be transferred to pilot-scale
manufacture. When fully operational, this facility will be able to produce DNA with a value in
excess of £25m pa and c.80% gross margins. Based on a sum-of-the-parts DCF, we introduce a
target price of 1,200p, which reflects the expected high demand for DNA and the significant
potential of its technology to address key challenges in the cell and gene therapy space.

[buzzzzzzzz] 30/9/2021 09:43

Hydrus

Key point for me is that current DNA production world wide is 3kg

and very shortly it is estimated it will be 100kg.

I asked the CEO in his last presentation whether he was worried about competition, specificaly Touchlight and he quoted those figures and said he wasn't worried.

I might try and find out what £25m equates too in terms of grams?

I'm guessing 67 grams as last I heard it was $500,000/gram and £25m is $33,500,000

[pob69] 30/9/2021 09:36

Finncap valuation 1,200p target price.

"Promising interims but recent manufacturing news is key event" . Extensive note is available via Research Tree and/or Finncap site (registration needed)

[hydrus] 30/9/2021 09:22

Sticking here for long run. Hard for a normal to genuinely understand what kind of technical and commercial advantage they might have so it's still a bet on the founder for me but with circa 80% profit on paper it's worked so far.

[buzzzzzzzz] 29/9/2021 07:20

Not that anyone will have noticed the RNS yesterday judging from reaction on the BB

For me the killer info is


"In order to develop the manufacturing
capacity required, 4basebio UK, a subsidiary of the Company, has secured a long
term lease for the Facility".

It certainly seems to me that the Company are anticipating large demand for DNA.

Potential revenue of £25m/annum

Current share price too low IMHO

[buzzzzzzzz] 22/8/2021 18:13

Not that anyone will have noticed but Kurt Zoors has increased his stake in 2Invest AG, which owns 30% of 4BB from 46% to 51.77%

A cheap way to aquire 4BB is to buy 2Invest shares as they are trading below the cash value of the share.

Each share of of 2Invest is has an interest in 0.65 of a 4BB share approx.

So 2Invest shares are trading below the cash value never mind 0.65 x £6.50 = £4.220

Call it 4.5 euro's to be conservative.

There is only one way this share is headed.

[buzzzzzzzz] 10/8/2021 10:43

Patience will be rewarded at TERN too!

[doc robinson] 10/8/2021 09:39

Looking good Buzzzzz a great company in the making it would appear will reward the patient

[buzzzzzzzz] 09/8/2021 13:03

Diversification
Excellent thanks.

[diversification] 09/8/2021 12:47

Should get an in-vitro vector development update soon, scheduled for Q2/3 21’.

Also seen Zak Mir cover the chart with a target of £10.50 which I think has brought in some new investors.

[buzzzzzzzz] 09/8/2021 11:00

Nice to see a little volume today.

Consolidation at this level would be nice to see.

Interestingly the 2invest share price has risen to 13.30 euro's.

So one can buy an inerest in 4BB by buying their shares as 2Invest own 30% of 4BB.


Probably talking to myself!

[hydrus] 04/8/2021 08:48

Buzzz I did see that presentation but hadn't realised you'd linked to it so thanks. I'm quite ignorant about the chances of success here this is completely different from my typical stock. I'm betting on Dr Lanckriet and his track record. A relatively small investment so I'm not going to spend too much time on it.

[buzzzzzzzz] 02/8/2021 07:35

Loving the share price rise on very small volume.

Shares obviosly very tightly held, mine are!!!

Calling share price £10.00 by Christmas

[buzzzzzzzz] 02/7/2021 07:58

Hydrus here is the link.

hxxps://wp-4basebio-2020.s3.eu-west-2.amazonaws.com/media/2021/07/01172210/20210701-Investor-Meet-Company-Presentation.pdf

[hydrus] 01/7/2021 14:25

Thanks Buzzz I'll look out for it

[buzzzzzzzz] 01/7/2021 11:37

Excellent presentation this morning.

Current share price not appropriate, not my words but companies.

Management very excited by forward prospects.

Presentation will be on Company website soon.

[buzzzzzzzz] 25/6/2021 13:50

Has everybody followed multibagger out of the door?

[buzzzzzzzz] 22/6/2021 09:13

This new patent looks incredibly exciting.

Looking forward to the presentation at the AGM.

With the success of RNA vaccines against C-19 there is going to be a huge demand for DNA.

4BB right place right time.

Hopefully GMP not far off!

[buzzzzzzzz] 09/6/2021 07:48

Not for long!!!!