This synergies, extension / variation / blend of renewed patent in combination, to the existing modes of action, is an incredible metric, to the probability equation imo. If i am interpreting what they are saying as.,,
Just think of this, you have an existing formulation, that is coming off patent. That means that it can be replicated in say India for pennies, and undercut you into your own market. How do you protect that ? Marketing - by providing an enhanced formulation, that is a hybrid synergy product which uses less active ingredient. Better economies to manufacture, and better marketing on the environment. eg. Do you want to spray the old Mortien ? or the Mortein + lighter more effective formulation at the dinner table ? Both products are available at the same price on the super market shelves. Which do you buy ? Hence the straight, singular antiquated formulation is overtaken with the synergy product, protected by new patents etc
So now think of this as a MUST have to protect your bottom line. Does that not sky rocket the probability of commercial deals and or corporate actions ?
It doesn't matter that even if this is a few years away, what matters is that the entry cost today, and what that corporate action valuation looks like then. Many stocks are cash flow zip for years, as they move toward a significant commercial event. Even a miner, has to raise hundreds of millions in capex to build the mine, before a penny is returned. What is their valuation rising by in the interim ? the probability of commercial return.
