Champ, given the information we currently know, the nature of...

Champ, given the information we currently know, the nature of Biota's earnings doesn't actually justify a PE of 10. We don't yet have Lani reuslts etc. Currently, Biota is supported by Relenza royalties, and at peak production we may earn the 53.6cents, but we can't assume this production will continue at these levels indefinately. If we don't take into account Lani etc. then $2.50-3.00 is probably roughly a fair valuation for the Relenza royalties.

However, preliminary Lani results are extremely positive so we all take that into account when we value Biota. It's important to point out that a group like RBS is inherently conservative and will heavily discount any earnings from Lani until Phase III trial results are out. Therefore they probably don't take the pipeline drugs into account when valuing Biota.

That's my take on it anyway. I think the greatest thing about Biota is that on Relenza royalties alone, Biota is still undervalued. Lani, HRV etc. all add to the blue sky. Very exciting times.