biOasis Breaking Out of Downtrend?

This week, biOasis finally appears to be breaking out of its downtrend, which was started almost exactly a year ago. At that time the stock was much higher, however, it became apparent that the Company needed financing, which resulted in the shares selling off, hitting lows earlier this year.

In April, biOasis not only received their financing, but got a management change as well. Dr. Mark Day took over as CEO and has been putting his fingerprints all over the Company ever since.

As I wrote about at that time, biOasis was ripe for a rally, and we did receive a sharp uptick to $1. However, the shares quickly retreated back to the deal price of $.70. This retrenchment was during the period after Dr. Day took the helm and assessed stock of the Company, including all the IP, employees, etc.

I have completed assessments of the Transcend Platform, the studies and data relating to the platform, the company’s Transcend patent portfolio and the two business models developed by the company.
I have come away from this process more excited than ever. ~ Dr. Day

However, beyond above quoted shareholder letter from the CEO, there was a noticed lack of news flow.

Which does not mean that things weren’t percolating under the covers. Quite the opposite was happening, as Dr. Day set to work on two things. Establishing a process to take the Company’s IP into the lab, and building a team capable of doing so to his stringent requirements.

We have seen glimpses of his efforts in team building, in the form of several key hires in the Company. These include Catherine London, head of corporate communications and investor relations, and Doug Williams, chief business officer. And, while it’s nice to bring in talented individuals, the announcements of their additions was not exactly a deluge of news flow.

The lack of news flow looks to be changing.

On August 28th, the Company announced a slate of directors for election at the annual shareholder meeting. This slate was dramatically different than the group that had been around for the last few years and included some pretty stellar resumes.

Frankly, and I recommend you look at their resumes yourself, these are the kind of directors that an early stage company dreams about recruiting the board. There are some heavy hitters here with impressive track records of both drug, and drug company, development. Often this has led to large exits for investors with substantial gains.

Shortly after announcing the new board nominees, biOasis announced the formation of a Scientific Advisory Board. Once again, this SAB board was littered with incredibly impressive individuals.

The importance of the new board nominees and SAB is really two-fold. First off, it’s certainly important for biOasis to bring in talented individuals to guide the Company. Success breeds success and there’s a lot of that here. As an investor, I’m happy to know that there are smart, proven, industry professionals driving this ship.

Equally important in my mind, as an investor, is the implications that can be derived from these people joining the Company. In a nutshell, their willingness to put their reputations on the line for biOasis speaks volumes to their clinical assessment of the drug delivery platform.

The biggest risk involved with any biotech company lies in the success or failure of the molecules. If a drug works, you are going to do well, assuming the team in charge is semi-competent; we have a more than capable team at biOasis.

More important to the success of a biotech is the success of the molecule than the management. And, frankly, it’s not easy to judge the likelihood of success from a distance, which is where investors sit. But, when a talented individual, with an industry background and track record, looks over a technology and says, “I want in!,” it becomes much easier for the rest of us to gain comfort around the technology.

This is beginning to translate into share price

The recent changes at biOasis are, without a doubt, highly positive for the Company. Let’s recap what has transpired in the last few months.

  1. New CEO with impressive resume
  2. Funding for next 12+ months
  3. Other corporate hires of high quality
  4. New board members with stellar track records nominated
  5. Scientific Advisory Board incepted, also with stellar track records

I challenge anyone to say that the Company hasn’t come a long way in a few short months; it’s truly a new look and feel.

From my perspective, it appears that the transition period of Dr. Mark Day taking control is coming to an end. His fingerprints are showing up all over the Company and one would think that, now that he’s had a chance to really sink his teeth into the projects, the news flow will start to increase.

Meanwhile, the market is finally waking up to biOasis 2.0. In the last few weeks the stock has broken out of its long-term downtrend.

I have never been more excited about the prospects of biOasis. The new management team has breathed life into a drug delivery platform that had, frankly, not been moved forward in the labs. Meanwhile, the new board nominees bring increased confidence in the quality of the technology and its future prospects.

The Company appears to be awakening. So does the stock.