teleconference, page-24

mattkid -

First of all - I have not seen a reference to securitising EU revenues, but maybe I have missed it.

What i have seen is:

1) reference to maybe selling European territorial rights to HA-irinotecan (in the Pete Smith interview dated 26 August); or
2) securitising Fonda revenue more generally (same interview)

I don't know much about securitisation of royalties, but I would be very surprised if it represented a win for ACL shareholders.

The sorts of groups that do royalty securitisation have a hedge fund mentality - that means that they are looking for solid returns with very low risk attached.

I doubt that they would be prepared to take a punt on a generic whose market potential - while theoretically quite attractive - is entirely unproven in practice, without applying a very high discount rate. There is just too much room for error.

I am happy to be proved wrong by someone who knows more about the area than I do.

But the best way to answer the question is often to ask whether - if you were yourself running a substantial investment fund - you would choose to pay a particular sum for ACL's European fonda royalty stream. . . .given the full universe of investment opportunities that would be available to you.