Calyxt Needs To Secure More Commercial Partners As Cash Dwindles

 

Since my last update, Calyxt (CLXT) has shifted strategy once again and named a new CEO to run the company. Though the strategy shift makes sense – a pure licensing approach instead of a mixed approach of licensing traits and selling some seeds – the reality is that it’s been about a year since the company moved toward a licensing model, and there’s not much to show for it. On top of that, the new CEO has no real relevant experience where the seed/trait-licensing business is concerned.

I do still think that Calyxt’s gene-editing approach to modifying crops has merit, but the reality is that there’s only about three quarters’ worth of cash on the balance sheet, and trait licensing agreements don’t typically include large upfront cash amounts. Though the potential returns of a successful outcome are indeed large, that path is becoming increasingly narrow and treacherous and this is really only a name for investors willing and able to take very speculative risks.

 

Read the full article at Seeking Alpha: 

Calyxt Needs To Secure More Commercial Partners As Cash Dwindles