I just listened to the Q1 webcast, and here are a few points regarding the nanoformulation of biological compounds that caught my attention in the management’s comments.
The production capacity of the biologics line is already about 10 kg per week. Management commented that one thing partners are interested in regarding Nanoform’s technology is specifically this high production capacity.
According to feedback from partners, Nanoform’s bioformulations have shown exceptionally good suspension stability, better than many competitors.
The goal is to set up the Bio GMP line as quickly as possible, and the company aims to have this completed in less than two years.
Bioproduction capacity will be set up using funding from partners.
The location of the Bio GMP line has not yet been decided. It might be located in Viikki, but the possibility of placing it elsewhere is also being investigated.
The company has certainly landed in quite a sweet spot. Partners see the value add of Nanoform’s technology as so significant that they are willing to cover the trial, development, and production costs on Nanoform’s behalf, yet Nanoform’s margins remain absolutely outrageous. Granted, at this stage, the operations are still small-scale in terms of revenue, but it seems that Nanoform’s pricing power will remain exceptional even if commercialization succeeds and production reaches an industrial scale.
I can’t help but think that I don’t own enough of the company’s shares yet. But the question is whether to buy cheap now or even cheaper later from a share issue. The market seems to believe a share issue is imminent, even though at the current burn rate, the cash position should last for about another 2 years.
Kauppalehti has published another hype interview with the Nanoform brothers; I figured the old patterns would hold true and the share price would jump.
As a warning to new faces: so far, I’ve noticed that every time there’s a similar story in Kauppalehti or elsewhere, or a target price mentioned that is hundreds of percent higher than the current share price, the stock jumps immediately, but so far those gains haven’t lasted, and the downturn has followed quickly.
Of course, it could be different this time. The recent exclusive agreement for a biologic drug candidate was “real news.”
Regarding Nanoenzalutamide, there was a sentence in the article stating that Nanoform aims for the “US market in 2027…” followed by mention of a slowdown regarding Europe. It isn’t clear from the article whether the CEO confirmed during the interview that 2027 is still the US target, or if the journalist was just referencing the company’s old communications on the matter… because the company has been conspicuously silent for a long time regarding the potential FDA approval process and schedule for nanoenzalutamide—meaning NOTHING has been mentioned for ages, they’ve only talked about Europe… (regarding which there was bad news recently).
A mention, but a poor news piece in terms of information. "According to Friis, technology company Canatu and pharmaceutical company Nanoform are unique high-risk companies.
They are suitable for patient risk-takers, as the companies may only achieve real breakthroughs in product development and commercialization after several years."
Jury’s special recognition — Peter Hänninen, Nanoform