10 October 2016
By Maynard Paton
Today I’m reviewing another of my recent investments.
The company in question is Bioventix (BVXP), which you may recall I revealed as a fresh holding within this third-quarter portfolio update.
I purchased my BVXP shares at an average price of 1,133p (including all costs) during August 2016. The bid price is presently 1,250p and the position currently represents approximately 5% of my portfolio.
I have to admit, BVXP is somewhat racy in comparison to many of my existing holdings. In particular, I may have paid ‘a high price for a cheery consensus’ following the company’s impressive progress.
There are also drawbacks involving a limited customer base and certain product revenue about to cease. The business is not that straightforward either — it develops sheep monoclonal antibodies for use in blood tests.
Nonetheless, supporting the notion that BVXP has above-average investment potential is what seems to be a very respectable competitive position, the benefit of long-term royalty income, some impeccable financials and leadership through the group’s founder.