DCF Valuation Model for Invex Therapeutics, page-103

The more I think about it, the more sense it makes to me that Peptron might want to make some kind of deal with IXC prior to readout. They have a bit going on at the moement with the launch of their once-a-month injectable leuprolide for the treatment of prostate cancer, breast cancer, endometriosis and precocious puberty and their share price is not playing ball. However, that could all be very different in 12 months time.

How would our board react to a US$ 50 million (half cash/half equity) offer for a 1/3 interest in the IIH program, prior to phase III read out ? I think something like that would certainly be considered by the board as it would completely derisk the readout. Keep the shares, keep $12.5 million in cash for development of next indication and use 12.5 million for a combination of buy backs and capital distributions. I am not sure how I would react as a shareholder, but I can understand why it might be considered. Or maybe they come with some additional cash to partner on the TBI opportunity.

A high impact low probability outcome, that would seem to have a certain logic to it, if certain circumstances allowed.