Market's view on Renalytix Plc
Published on April 2024
- A comparison is made to Pharma, suggesting that RENX might see similar margins with product costs around 20% and sales/general costs about 30% for an established product, alongside extra outsourcing costs of 10-20%. Scalability is identified as essential for RENX to penetrate the addressable market.
- Concerns are raised about RENX’s ability to follow a business model similar to Invitae, especially since they lack the infrastructure to set up labs themselves and licensing tests to labs might be costly.
- A discussion is held on the financial stability of RENX, citing a potential private takeover due to management issues, speculated to be orchestrated by major holders like Mt. Sinai.
- There is optimism from a stock watcher about RENX’s founders participating in a fundraising, although they are seen as the funder of last resort, providing a temporary reprieve to facilitate a potential sale without immediate financial pressure.
- Criticism is directed towards RENX’s appointment of a Business Manager who does not list RENX as his employer and concerns about his effectiveness due to his age.
- There is speculation about RENX potentially following a scenario similar to a company that experienced a multi-billion takeover.
- Pessimism is noted regarding RENX’s future, with a watcher detailing a common pattern of companies on the brink of collapse initiating formal sales processes that rarely result in favorable outcomes.
- Questions arise regarding the potential sale price per share during a company sale, with a mention of the dire need for a substantial buyout offer to prevent significant losses for shareholders.