Biotron is left with very little capital expenditure by the time the company takes into account its accumulated losses. The capital left is $4,475,110 out of $32,548,656. This is just ridiculous if you ask me however i do understand that a lot of money is spent on research and research often requires a lot of experimentation which sometimes produces results.
When looking at the assets current and fixed assets the company seems to have lost half of its entire assets over a year. Whether they sold it off and i'm not finding where the money went or they put the assets into leasing. It wouldn't make sense if they put it into leasing because the liabilities have decreased by half from last year. Another very interesting point i noticed was that the company declared it would not pay a financial year dividend for 2013.
The company did lost around almost $3.1 million on a net decreased due to the money they are losing on research. The research of the current year has been very slow and the company has hit a very low point in its revenue cycle. It had major publicity for its BIT255 drug which is set to cure HIV and Hepatitis C however the research is still on going and this make shareholders a little worried about whether the vaccine will work. Currently there is on site trials of 3 month testing in Thailand.
The graph above shows the last three years on the share market . As you can see the shares have had a huge slump but are slowly regaining into 2014.
2012 was a big year for Biotron as the company announced that it found this BIT255 drug that could possibly cure HIV and Hepatitis C. It got major publicity and then after three years it came up with inconsistent results which thus resulted in a distrust of shareholders.
My questions and confusion come from three main areas
1. Where are all the fixed asset cost going?
2. Why is the company so low in the share market right now?
3. Why doesn't the company outsource some of its job to ensure the job gets done quicker by similar smaller companies and thus finding results quicker?
Your questions are interesting. I know in Australia, we are great at research, but we rarely develop products in these areas and commercialisation is done overseas. Perhaps Biotron is changing its business model and has used its assets to fund the development of products. Just a thought.
ReplyDeleteit's a shame to see a company involved in such important research like this is losing money. Hopefully they can turn things around
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