Platform biotech with 2 approved drugs

A mispriced lottery ticket

Not a Chinese stock this time but a US traded Israel based platform biotech company with 2 approved drugs, and multiple drugs for rare diseases in its pipeline. The CEO purchased a sizable chunk of shares late last year at a higher price. The company has a net cash position.

Milestone payments alone for their second approved drug a year ago could be up to 11x the company’s market cap. The company is currently profitable. The market does not price in management’s base case scenario of taking 15-20% market share despite this drug outperforming the very limited competition significantly in efficacy and side effects.