On $256Mn MC we are up 25% which is half the acquisition cost of APIRX! Our new MC is about $288Mn.
Think about it out it: Some of us would agree APIRX's acquisition cost of $125 Mn was a steal (Plus $7Mn transaction advisory cost). Even if you consider that it was a fair price, that means 288Mn (IHL's MC) - 125Mn (APIRX deal) = $163Mn is the current valuation of IHL's pre-transaction assets (OSA, LI, TBI, GAD + VR deal with Monash).
With the level of de-risking via pre-clinical results in the last 2 years and moving into phase 2 for a number of IHL + APIRX's portfolio, the company is still available for AUD $288Mn for a TAM in excess of US $400Bn which is AUD $574Bn !
Even if we can capture 1% of the TAM which is $5.74Bn, relative to current MC of $288Mn is about 20X from here on a Price to Sales basis. Usually MC is 4 to 5X Sales, which makes it 80 - 100X from here.
So for sales of $5.74Bn, MC could be $23 to 29Bn. No biggie!
(AIMO - all guesses. No advice).
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