The value will emerge in the next 3 months and depends on the quality of the announcements and subsequent deals. Previous company presentations on ATC have suggested that it is targeting 20% of a $3b HIV market which means the partner could achieve $600m in revenue per annum. I have been told that the company are seeking a partnership deal which has an upfront payment of around $15m + 20% royalty over the life of the patent (10 years). THis would generate approx $120m per annum for avx. If you are conservative and cut these projections in half and say $60m revenue X a PE of 15= CV of $900m / 725m shares =$1.25. per share.
This suggests that if company projections are correct and a deal is done on these parameters that the potential share price is between $1.25 and $2.50. This is without attaching any value for other pipeline products.
This capital raising is only slightly dilutuve and infact strengthens the balance sheet and reduces risk for shareholders. The big picture and upside is still very achieveable, and for those of us who have been very patient for a few years, very close.
AVX Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
