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Chasing trades could be fun, but being able to feel confident about your money while maintaining all the upside is even better
There’s one stock that has everything going right, but yet institutional ownership is still low. They fear one thing that was actually solved without them noticing.
Once this becomes common knowledge, people (including fund managers that are sitting on the sidelines waiting to enter) will recognize the (no) risk / (high) reward ratio.
DRTS has a proven oncology platform. The countless clinical and regulatory achievements are undeniable, the doctors and the patients are calling for it, and it seems just a matter of time until it becomes an industry leader.
What could have been the (only) reason institutions haven’t bought in yet? Besides the company going under the radar with no PR, fund managers want to know the business can keep the lights on and make it to commercialization.
Well guess what, DRTS is now Fully Funded!
DRTS has recently signed a commercialization deal with Tolmar. There’s much to talk about with the deal, but the angle that most fail to see is how this deal fully funds DRTS moving forward.
DRTS received millions as investment, millions towards manufacturing, and will be payed 60%(!) of every sale, while Tolmar gets the rights to sell the DRTS treatment for Prostate Cancer in the US, with all the expenses payed by Tolmar.
This deal alone, is expected to create Billions in annual revenue for DRTS (tens of thousands of patients per year at about a hundred thousand dollars per treatment).
But here’s what everyone is missing. DRTS will get payed up to $161.5M in clinical, regulatory and commercial milestones. What does that mean? It means Tolmar is funding the whole process, it means the DRTS Prostate program is fully paid for from the first trial starting all the way to market.
In other words, DRTS now has a timer, and within 2-3 years (max, and fully paid for from start to finish) DRTS is expected to bring in Billions of annual revenue.
It also means, post deal signed, DRTS has $100M+ cash on hand, with a \~5M quarterly burn rate, with many other indications already deep in progress, including sCSS which already completed the ‘phase 3’ trial, Pancreatic Cancer and GBM close to a Pivotal trial, awaiting results from a combination trial with Keytruda and more!
And who’s to say they won’t do more deals like this one? The Prostate treatment (same treatment for all tumor types) hasn’t even started trials and still got a deal, so the options are many and the precedent is set.
DRTS could also sign a deal in Japan, where they already got the approval and market authorization for H&N cancer. Same in Israel and they have trials all over including France, Italy, UK, Canada and more.
And with everything going right and all the funds lined up, in a few months with all the result readouts coming we might see the warrants getting called, which will bring in an additional $100M+ (at that point what do they even do with the money? Accelerate manufacturing I guess).
Yeah of course there are risks, but at this point what even are they? And what’s the likelihood of any of them even concerning a company that has so many different trials in so many different countries with an experienced team and outstanding results and now all the cash they need to fund operations. Any additional funding will just be adding rocket fuel on great terms.
DRTS is still relatively thinly traded, so NFA and DYOR (really, check it out for yourself), but if you can understand this and get in at these levels, you should be enjoying the ride when the institutional money starts buying in and the tide will rise (and stay high).