York could do with a little less hype if Mr Sadler is to triumph. Its broker reckoned the cream will end up selling pounds 150m a year for hard-to- treat infections. This guess might turn out true, but there is so much to prove that to use it to argue the share price should be 1,600p (which it did) is voodoo economics.
Yesterday, York paid pounds 5m with its inflated shares (up 10p to 110p) for Molecular SkinCare, a private company with treatments for psoriasis and to repair the skin barrier, damage to which might cause eczema. Both products are yet to prove themselves in the clinic.
York has pounds 5m in the kitty to fund these projects for a year or so, but shareholders will pay a heavy price for setbacks. Avoid.