cst and pgl: 2 gravy trains running?, page-8

re: cst and pgl, 2 gravy trains running? I did inform quite a few people when PGL was $1.50 in Jan.

The Options have gone up by 700% or so.

It is a very sophisticated drug, possibly better than AVASTIN.
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From Pa2000

"The note's from eG Capital.

They comment on Q3 Avastin sales, the relevence for PGL and how conservative their current valuation is (A$6.15).

They highlight as conservative assumptions:

- the deal size (US$100m);
- the drug price (half that of Avastin);
- the royalty rate (8%);
- no value on PI-166;
- no value on Medigen holding;
- no value on other IP (2nd generation PI-88, heparanase products, etc).

The A$16.90 valuation is simply the "unrisked" version (i.e. the drug making it to market) of the A$6.15 one (which discounts royalty revenues by 60% and total valuation by 20% to account for the risk of PI-88 not making it).

Can only imagine what it would look like if they weren't so conservative!"

PA
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