– Biopharma with pending Phase 2 results for one of its drugs is expected shortly.
– If positive – 10x return.
– Proprietary DD on the likelihood of success.
– Involvement of activists with a lower cost basis
– Could have exited profitably instead of starting a proxy fight.
Valuation: Upside based on mcaps of peers CRTX and SAVA in the space.
13:1 upside: downside ratio from 900% upside case for the stock vs the ~20% downside case.
Exp. gain: +900% to $100/share in 1.5 months.
Full ATHA write-up (free guest account required):