Originally posted by cuppa
''supposedly they've been shocked by the reaction ''.I cant believe they cant see why the sp has tanked.The first deal needed to be a better upfront payment,coupled with the fact it wasnt a big pharma,and the trial time lines,and the people leading us cant work it out?
I still think it will come good in the end,but short term pain for awhile.
Sorry, I don't really agree with that, but we're all entitled to an opinion.
By way of context:
Affimed released a massively back ended deal, similar risk profile to Neuren's - worded differently and look at reaction.
It closed up 250% at nearly A$500m market cap, or .
So look at how well it was worded:
"The financial terms of the Agreement include
upfront payments and committed funding over the first 12 months of the collaboration of $96 million and up to approximately $5.0 billion in total milestone payments upon successful development and commercialization of all product candidates developed pursuant to the Agreement. "
They have combined the upfront with development costs!
NEU should have announced:
The financial terms of the Agreement include:
- upfront and committed funding of the collaboration of US$69 mill/A$94 mill (including the equity component at $4.00 per share);
- approximately US$75 mill/A$102 mill for fragile X development;
- US$105 mill/A$143 mill on achievement of development milestones;
- Up to US$350 mill/A$476 mill on sales milestones;
- One third of the value of any Rare Pediatric Disease Priority Review Voucher (in 2017, five vouchers were sold for between US$110 mill to US$150 mill/A$150 mill-A$205 mill);
- Escalating tiered, double digit percentage royalties on net sales of trofinetide in north America; and
- Neuren retain all rights outside North America.
Instead they wrote:
"Neuren to receive US $10 million upfront plus potential milestones of up to US$455 million in royalties."
Later they released an announcement that introduced Acadia's investment for Rett of approximately $55 mill for the first time, yet this was not marked market sensitive and got lost in the ensuing chaos?!
Poor investor relations/comms is the long and the short of this mess; but at least it appears management are starting to discharge their duties with care/diligence/etc and correct it to an extent.
Cheers,
(20min delay)