Ann: Investor Webinar featuring COO, Dr Glover & CMO, Dr Woodard, page-272

The items in ‘Bold’ are all relevant and make it seem that Precision Biosciences have sold out at a bargain. But the most important couple of words that should be in ‘Bold, Underlined and Italics’ is ‘….double-digitroyalties on net sales’ and ‘….tiered royalties on netsales’.

Royalties are many multiples of the original license. Let’s use some arbitrary percentages for this example. Say 15% up to $1b in sales, 12% from $1 to 3b in sales and 10% for >$3b in sales. One of the announcements from either Imugene or Precision Biosciences indicated the royalty rate was industry standard. Remember ‘tiered double digit royalties on net sales’. As it is essentially all IP the profit margin for Precision Biosciences is 90% plus.

Not a bad earner for Imugene and Precision Biosciences.

Now think about it this way using some figures from a @Watmighthavben previous post. If Precision Biosciences go it alone they limit their product in the Blood Cancer Market which is expected to reach USD 89.68 billion by 2029. Go in partnership with Imugene (CF33/Vaxinia) and we now open up the Solid Tumour Market expected to reach USD 901.27 billion by 2029.

Approx USD 90 billion verses USD 990 billion!

The one thing we don’t know is the behind the scenes negotiations with other suitors. Maybe BP or others have come in hard for a winner take all approach. Whereas, the deal with Imugene is mutually beneficial for both companies. IMO the deal for both Imugene and Precision is brilliant on a number of fronts.