Not claiming to be more informed, but I thought i’d chime in if that’s ok.
If I was on the side of the BP suitor, I would certainly want to conduct thorough due dilligence on Bene, and have assurances from them on supply. I’d have to have the utmost faith in both companies before green lighting a deal.
I don’t think we have any reason to be concerned about Bene playing their role in that - as it is firmly in their interests to.
However, it’s worth keeping front of mind that Bene can only supply to PAR for indications within the field and territories of our exclusive supply agreement. The September 2020 agreement cemented this. Any S&D deal struck with BP is entirely up to the PAR board and no-one else. Bene will not be due any part of the monies from this deal save the agreed price per kg of raw API (the active pharmaceutical ingredient - PPS) that PAR subsequently purchase from them (which could go through the roof) plus additional royalties on sales which are stipulated as part of the supply agreement.
Everything else you say is totally correct though. PAR, and the value proposition to BP of any deal, hinges entirely on the Bene agreement.
I guess holders simply cannot know for sure if there is a fissure in that supply agreement until the first deal is signed. The first deal validates everything, and sends PAR into orbit.
PAR Price at posting:
$2.02 Sentiment: Buy Disclosure: Held
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