This agreement seems to relate to a specific new initiative they are exploring with Sanofi. At this point the agreement is formalising the partnership between RAP and Sanofi on whatever may come of the initiative as it evolves over the next few months. There is an end date to the agreement, and fair to assume that by that point, they expect to know one way or another what will come out of it.
This doesnt imply RAP cant collaborate with other partners on other initiatives, it just protects both parties in the event that they can establish a marketable outcome out of whatever they are working on together at the moment.
Sanofi is one of the giants of the industry. Partnering with Sanofi is as good as partnering with anyone. A commercial outcome from this initiative will mean the ability to bring it to market rapidly (globally if they choose) with very little effort. Sanofi is well equipped with deep pockets, massive global footprint, plenty of infrastructure and plenty of resource and like its peers, a desire to stay ahead of the curve. Exclusivity around whatever they come up with will ensure that its worth Sanofi's effort today.
We will have to wait and see if it results in something commercial to get excited about, but at this stage its good to see yet another iron in the fire.
RAP Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
