Take time to peruse the most recent presentation, dated 21 March 2010; particular reference is made to the slide - engineering Phylogica for accelerated success.
What are our directors trying to tell shareholders?
Firstly, the Roche agreement is not a one off opportunity. There are "3 more big pharma deals in late stage negotiation."
Secondly, Phylogica is not a nondescript bio tech company nipping at the heels of big pharma to get attention. Dr Paul Watt now gets "access at the highest level in Pharma." I presume access is made available, not because he's a nice guy, but because Big Pharma want to negotiate terms and conditions for collaborations at the cutting edge of the biologics space. Phylogica is a potential game breaker for the next generation of drugs.
Thirdly, it has the utmost confidence in its business model, which involves an end trade sale, to generate shareholder value. Phylogica is "packaging internal assets (antimicrobial/anti-inflammatory and wound healing) for sale." It will be interesting to discover the value of these assets - it is quite possible that a certain Big Pharma company has already expressed keen interest in the package.
Multiple collaborations will create the competitive environment in which an "average valuation at acquisition of A$450M" could be realised (refer presentation). Lets see, now thats $1.60 per share on a fully diluted basis.
PYC Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
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