People always say that Faron at its current price is just pocket change for big pharma, etc. However, significant resources and time are still required just to get final results in the first indication.
Big Pharma can’t outsource everything to a CRO; they still have to tie up their own professionals’ time (which always carries an opportunity cost) in the project. Just remember how long the VERONA trial took, which was the most significant Phase 3 study in many years.
In my opinion, a good analogy for a drug candidate is an unstarted mine. Those are sold for nominal amounts. Often, the fair valuation of a small biotech is also close to its cash balance.