Plethora's PSD502 drug has mass market potential
Plethora Solutions is definitely a small cap stock to watch and in an exclusive interview with Sharecast, Daniel Stewart analyst Vadim Alexandre has reiterated the bull case for the biotech tiddler.
Plethora Solutions is definitely a small cap stock to watch and in an exclusive interview with Sharecast, Daniel Stewart analyst Vadim Alexandre has reiterated the bull case for the biotech tiddler.
Plethora Solutions has a drug, PSD502, aimed at treating premature ejaculation, which has passed two phase III trials and is currently awaiting European approval. This approval is expected late in the third quarter or early fourth quarter of 2013.
Importantly, it announced at its interims on December 28th that talks "had commenced with multiple parties to identify a commercial partner to bring PDS502 product to market.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Alexandre believes the stock is "grossly undervalued" and has placed a price target of 15.7p on it, 214% upside on its current 5p price.
Now, as house broker you might perhaps expect him to be keen on the stock but he's positively enthusiastic, while noting that its closing cash balance at the interims was only £0.2m, which means: "We estimate that the company will need to secure further financing."
He's confident that the next 12 months will see the transformation of the company, with the signing of a deal probably before EU approval, as any partner would have to factor in a ramp-up period prior to the product's launch. With that deal would come some sorely needed funds.
With an estimated 30m European men as potential targets for this treatment it may be a compelling investment case.
Alexandre thinks it is: "We believe that PSD502 has the potential to 'go mass market'. Should this transpire, our estimates of the treatment's market potential would be significantly increased. That said, even if the treatment achieves a fraction of this market penetration, Plethora's business would be substantially transformed."
For those of a cautious disposition, who like to invest in well-funded companies, it might be worth holding off until any deal is announced. Yet, the fact that billionaire Jim Mellon, a non-executive director of the company, has been funding the company in return for shares, ought to offer some reassurance for those prepared to gamble on this biotech play.
CM
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
How to pay in a cheque
Receiving or writing a cheque has become much less common in recent years as instant bank transfers have grown in popularity. Amid widespread bank branch closures, we explain what to do if you get a cheque, and how you can pay one into your bank account.
-
Crypto assets of seven million UK investors at risk – how to keep yours safe
Cryptocurrency wallet rules make it hard to track down assets after someone has died, even if they leave a will saying who they would like to inherit them