jwesth @jwesth: " 𝙄𝙨 𝙂𝙪𝙗𝙧𝙖 𝙩𝙝𝙚 𝙣𝙚𝙭𝙩..."

United Kingdom

𝙄𝙨 𝙂𝙪𝙗𝙧𝙖 𝙩𝙝𝙚 𝙣𝙚𝙭𝙩 𝙬𝙚𝙞𝙜𝙝𝙩 𝙡𝙤𝙨𝙨 𝙬𝙞𝙣𝙣𝙚𝙧? 📈 Danish biotech company $GUBRA.CO (Gubra A/S) has skyrocketed in 2024 and is suddenly on the radar of many retail investors. Since its listing on Nasdaq Copenhagen at a price of DKK 110 in March 2023, the share price has risen by +350%. 🫃It is the obesity hype that has largely fuelled the wild price performance. Investors are looking for the next weight loss winner after seeing the success of $NOVO-B.CO (Novo Nordisk B A/S) Wegovy and $LLY (Eli Lilly & Co) Zepbound. With a global weight loss market that Goldman Sachs estimates could reach a staggering USD 130bn by 2030, investors are ready to bet on the next obesity blockbuster despite the high risks. 🔬 Gubra has three weight loss drugs in Phase-1 clinical trials and another five in the discovery phase. But there is absolutely no guarantee that drugs in such early stages will reach pharmacy shelves, and it can take many, many years. 🤝 With Gubra's partnership model, investors don't necessarily have to wait that many years. Their collaboration with partners means that they receive milestone payments as the development of the drug progresses, while the partner has the right to further develop and commercialise the drug. 💰 Gubra states that the two most progressed weight loss drugs in collaboration with German Boehringer Ingelheim could potentially trigger milestone payments of up to DKK 1.8bn (c. USD 270m) each. That's significant for a company with 2023 revenues of DKK 205m (c. USD 30m) and a market capitalisation of around DKK 8.5bn (c. USD 1.2bn). 🧪 Although Gubra's business leg, research and development services for other pharmaceutical companies, provides some stability in earnings, the company's earnings will largely depend on progress in its own R&D portfolio. 📊This also makes the share price highly sensitive to positive and negative research data. For example, the share price rose by up to 40% in a few days in July following the announcement of the launch of a phase-1 study for a promising weight loss drug. 💡Some investors might be interested in gaining exposure to the long term weight loss megatrend, seeing through the short-term volatility. However, it is important that retail investors are aware of the risks associated with investing in companies where a big part of their value is tied to the potential of the R&D pipeline. $NVO (Novo-Nordisk A/S SPONS ADR) $AMGN (Amgen Inc) $SAN.PA (Sanofi) $SNY (Sanofi-ADR) $ROG.ZU (Roche Holding Ltd) $GSK (GlaxoSmithKline plc ADR) $GSK.L (GlaxoSmithKline) $ZEAL.CO (Zealand Pharma A/S)

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