BNTX - SCYNEXIS Inc.: Speculative Buy Michael Burry Sold But I Am Buying

• We are initiating Scynexis with a target price of USD 23 per share. SCYX offers an extremely attractive set up with 600% upside and limited downside (10-15%) considering its near cash.
• SCYX's Brexafemme is clinically de-risked and targets an attractive fungal infection space. Even though we expect muted uptake during 2022, we project 200M-400M peak sales within 5 years.
• The critical inflection point for the stock will be a business development activity from Big Pharma, not near-term earnings.
• The company has 100M cash, but has a high cash burn rate of around 50M/year and will likely need to raise 50-100M soon to fund its phase 3 trials.
• Considering close to cash value EV, we view BD activity as more likely and a public offering.

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