Image Source: World Health Organization
Company Thesis
Spring Bank Pharmaceuticals' (SBPH) $10 million enterprise value remains deceptively cheap for value investors for a reason: its sole Phase 2 candidate for the treatment of HBV is likely inferior when evaluated against competitors. Despite Inarigivir having a passable mechanism of action and SBPH having no risk of stock dilution until 2022, the company committing R&D into a drug with questionable efficacy will likely cause the stock to continue trading below its total cash balance until new clinical candidates are explored.
Issues with Inarigivir
Inarigivir is