LJSM, the CEO and CMO got $55 million for selling some ACI rights to Vericel.
They won't be letting ATI go for anything less than many multiples of that, but more hopefully an ATI partnership for at least initial payments in that realm, and milestone payments of far more. I think that will be far more instrumental in near term valuation of OCC (hence my impatience on them), as well as any forthcoming Remplir deal (surely very likely?). I think our CEO and many of our Board members will be looking at this next partnership stage as nice little retirement ascent (Paul perhaps eventually moving into the Chair role after partnerships in place with some more big Henry Schein like companies attracting capable executives).
Henry Schein reported $12 billion full year revenues recently of which dental was $7.5 billion formerly in its report. Alas they don't do segmented BioHorizons breakdown, but we know Striate now marketed by BH, Ace and HS.
Biologics just one small aspect of that and the Striate collagen membrane just one aspect of that in turn fo course. But I don't think people are reading the tea leaves very well on this one on the potential revenues in Striate alone. Lots of M&A in the bone graft substitutes and biologics mkts (Zimmer Biomet and Embody; Stryker in Artelon) as a few of the big boys play catch up:
Calls on the present market size for dental bone graft subsitutes market of around $1 billion seem not unreasonable, but generally strong growth forecast in the area - hence the M&A scrambles - as any report exhudes. We know Strauman leads the implant market but BioHorizons not far behind (Henry Schein actually lead at 31% of dental equipment by the reliable, and very expensive, IBISWorld). If BS can take 10-15% of the bone graft substitute market, and Striate, as their main pushed product in the sphere even 30-40% of that.....well they are going to need a bigger boat....on Striate alone - some discounting for new innovation, risk of execution, improving competition, etc, etc.
I don't entirely disagree your sentiment or calls on PE (what period yours pertain to I am not sure) and actual forecasts from the company would indeed be helpful. To be honest calls of $1 before the BH deal on OCC (outside of a J&J partnership) were a bit silly. But I am surprised it isn't already trading there on the Bio Horizons/Henry Schein deal. (my exact analysis you could drive a bus through the range on forward earnings and of course kind of proprietary, but the above gives an idea of the sheer scope of potential mkt penetration OCC might guide for if it were a bit more forthcoming)
OCC Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
(20min delay)