Overall at 3.5* quarter imo.
I am concerned about their new fulgent pharma acquisition may become a cash burn machine. CFO said $17 mil/year cash burn with the pharma wing but I suspect that’s less than what I have seen some others burn chasing this some miracle mirage drug . Drug approvals are complex ,costly and often ridden with unexpected negative outcomes. Not to say even with positive data fda may not approve and even post approval drug maybe recalled post marketing. my best hope is that they take a Schrodinger like approach to drug discovery where they let more experienced partners i.e drug companies run the trials for them. Whoever told Ming drug discovery is a quick and high ROE industry…
Also I am suspicious is this $100 mil was a payout done for the co founder buddy to slowly glide away. I would be very concerned if he left the company altogether in next 1 year.
Also was CFO sandbagging growth rates next year of 10-25%? They’ve been growing 50%+ for 2 years now. Could have taken the "we are not providing 2023 guidance currently " route and I would have preferred that.
Positives this q are the ongoing growth in core business is solid. Cash management was conservative and stock buy backs are ongoing.
Long fulgent for now.