Company presenting at Techknow in Sydney (today)/ Melbourne (tomorrow), page-39

Hi All,
Great discussion, for what it's worth I know some on here have a final price of several dollars in mind, but my expectations are more modest. $2.00 plus will make me happy, anything more will be a bonus that I will gratefully accept. I have already sold around 40% of my options at a nice profit and will offload more when the sp recovers, whenever that is. I plan to hold a million shares to the end and see what happens.

Whilst 87% is the average, it's easy to find companies that sold for several billion US dollars that had no revenue. In these instances the acquiring company bought a drug that's it. However in some cases it also had the potential to be a platform treating multiple diseases, so that inflates the price. Also US biotech's appear to attract greater values during development.

I'm not sure Michael's comment about being acquired automatically says we are not looking for a partner, I agree with @qwert0 that a partnership to start will be the best avenue, as this will lead to an acquisition in the longer term, that could lead to a 2-3 billion plus offer.

AS@NZ Trader says having a pill with proven shelf is a big thing and should be considered important.

Here are some examples of large pharmaceutical companies acquiring smaller biotech companies with no income and a Phase 2 clinical trial in progress, with a deal value exceeding $1 billion:

Sanofi's acquisition of Bioverativ Therapeutics (2018): Bioverativ was a biotech company developing treatments for blood disorders. At the time of the acquisition, Bioverativ was in Phase 2 clinical trials for its lead compound, BAXD-301, a treatment for warm autoimmune hemolytic anemia. Bioverativ had no revenue at the time of the acquisition and was valued at $11.6 billion.

Roche Holding's acquisition of TIBCO Software (2014): TIBCO Software was a biotech company developing treatments for various diseases, including cancer and infectious diseases. At the time of the acquisition, TIBCO was in Phase 2 clinical trials for its lead compound, TBO-Me, a treatment for multiple myeloma. TIBCO had no revenue at the time of the acquisition and was valued at $4.3 billion.

Gilead Sciences' acquisition of Kite Pharma (2017): Kite Pharma was a biotech company developing immunotherapy treatments for cancer. At the time of the acquisition, Kite Pharma was in Phase 2 clinical trials for its lead compound, axicabtagene ciloleucel, a treatment for non-Hodgkin lymphoma. Kite Pharma had no revenue at the time of the acquisition and was valued at $11.9 billion.

Celgene's acquisition of Juno Therapeutics (2018): Juno Therapeutics was a biotech company developing immunotherapy treatments for cancer and autoimmune diseases. At the time of the acquisition, Juno was in Phase 2 clinical trials for its lead compound, JCAR017, a treatment for B-cell non-Hodgkin lymphoma. Juno had no revenue at the time of the acquisition and was valued at $9.7 billion.Amgen's acquisition of Five Prime Therapeutics (2019):

Five Prime Therapeutics was a biotech company developing treatments for various diseases, including cancer and autoimmune diseases. At the time of the acquisition, Five Prime was in Phase 2 clinical trials for its lead compound, bemarituzumab, a treatment for gastric cancer. Five Prime had no revenue at the time of the acquisition and was valued at $1.9 billion.

These are just a few examples of large pharmaceutical companies acquiring smaller biotech companies with no income and a Phase 2 clinical trial in progress, with a deal value exceeding $1 billion.


Cheers