The biotech sector has fallen on hard times, with momentum investors
fleeing the space and those who remain taking a much more careful look
at just how much they are willing to pay for these speculative stocks.
Caught up in the mix is the very under-covered Basilea Pharmaceutica (OTC:BPMUF),
a small-cap Swiss biotech focused on antibiotics, antifugals, and
oncology drugs. While the company does not yet have a drug approved in
the U.S., key filings are close at hand for multiple drugs.
Investors
should note that Basilea's U.S. ADRs are very illiquid. With less than
10 million shares outstanding, an average volume of about 110,000, and
three analysts covering the company it is not as though the Swiss-listed
shares (SIX:BSLN) are rolling in ample liquidity either. This makes an
already risky situation a little more challenging for U.S. investors.
Follow this link for more:
Should Basilea Pharmaceutica Be Trading At Twice This Price?
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