Ann: Dimerix Receives Initial Upfront Payment from Advanz Pharma, page-103

I absolutely agree with you. It is the 1st interim result time frame for NEU (Dec 2021) compared to DXB (March 2024) that one should look at.

Just a reminder:

Europe market represents USD $990mil potential market for DXB compared to global major markets of USD $6bil potential.

The deal with ADVANZ PHARMA is for Europe market plus CANADA, AUSTRALIA, NZ and is $230mil milestone payments, PLUS 15%-20% royalties.

What that means is the total milestone payments for all major markets combined is 5-6 times higher than the $230mil signed with Advanz Pharma.

$230mil × 5 = $1.15bil milestone payments potential.

PLUS, 15%-20% annual royalties on global sales.

Assuming DX-200 is a success and going to be approved by FDA, when global sales reaches USD $1bil out of total potential of USD $6bil, the 15%-20% royalties represents USD $150mil-$200mil annual income to DXB or around AUD $230mil-$300mil annual income.

If applying a biotech/medical stock standard PE of 15 to that income, it implies a $2.3bil-$3bil MC (just based on royalties income). Then add in another $1.15bil cash milestone payments, the MC can reach $3.3bil - $4.4bil potential.


Even taking a conservative approach to the potential at 50% discount, the MC potential is still $1.65bil - $2.2bil.

I think the market will wake up and value this stock more appropriately in the weeks and months ahead.

It is a compelling risk/reward stock for me.