Pinned straw:
Hmm. IRL, I’m 3/4 of the way into building my initial position in OCC. If it were a case of “business as usual,” at current prices I’d be topping up to a full position. BUT…
Then came the institutional-only CR, and I couldn’t quite see why. So I paused in buying, and now that we know the reason for said CR, I’m still sitting, paused. BECAUSE…
One thing I’ve learned the hard way with biotech, especially start-ups that are not yet solidly profitable: The more discrete, distinct products they try to sell (before hitting profitability), the more likely they will overstretch, stumble, and underperform. New and potentially different products going to different target markets is an orange flag for me.
The critical point on which I’ll be waiting for clarification is whether PearlBone (once FDA cleared) will sell through the already-established Striate-Remplir channels, or whether the sales force/customers will be largely different. Meaning, in hospitals, are all reconstructive surgeries’ products bought through a single buyer? Are they the same surgeons, or an entirely different group?
How much overlap is there between the two marketplaces? And is the plan (which we don’t yet actually know) to promote and sell PearlBone using the existing OCC sales force or will a separate sales force rollout be required?
On the one hand, I sort of wish OCC hadn’t complicated their business pre-profitability, yet as @mikebrisy says, sometimes opportunities have to be grasped when they appear.
I suspect I’ll be sitting, paused, until we know enough to understand how OCC/Marine Biomedical see their new association playing out.