Extreme Chronic Undervalue, page-46

This is the ballpark Kazia should be in right now. (see below) NOTE: this sale took place after Phase 2 trials. Same as KZA. (Own drug is actually more valuable, without competition - but not even worth further mentioning now).

These sorts details and stories.....often brought onto the chatline, often never get a further subsequent mention by posters. Why not - Does not fit the agenda of one or two posters here, that is for sure

- or if you own KZA right now, maybe you think - "Well that sort of good fortune, never comes by way."

- or the concept of comparison like this, is just not accepted by some. Does not compute in their minds.

But just read the story and allow for the possibility......this is where we are now, after similarly completing Phase 2 in a cancer drug. The question is - how can any company negotiate a license (NPV adjusted) ... or 100% sale deal for $500m, when the whole company worth $40m.

But more of a concern for me, is the possibility the company will think US$20m upfront sits nicely, when compared with the market......US$20 m verse a true worth of $500m, as per the story below, is exactly why I am concerned, specifically based on the woeful CR...... and a less than glorious history even prior to the dreaded CR.

A new Chairman now, can go some way to removing those concerns for investors.

Twenty million up front, which I think is possible for the reasons mentioned - well investors be prepared for a stagnant SP again for another 3 years.

It is a serious situation and there you have why I have been trying to do something about it.

$60 m up front - and I will eat humble pie for the month, but in the meantime, this is a mess and the responsibility lies with the company. $60m upfront is cheap but a real longshot.

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Pharma giant Merck bids $500M for ASX biotech Viralytics

Published at Feb 23, 2018
Merck & Co (NYSE:MRK), one of the largest pharmaceutical companies in the world, has bid A$502 million for ASX-listed Viralytics (ASX:VLA) — a deal that would secure the rights to VLA’s lead immunotherapy cancer drug, Cavatak.

VLA’s primary focus is on the development of various immunotherapies which utilise particular viruses to infect and kill cancer cells. Cavatak uses a common cold virus, of proprietary design, to treat cancer. The drug candidate is already in multiple Phase I and Phase II clinical trials.

The bid from MSD (Merck’s trade name outside the US) of A$502 million (US$394 million) cash, or A$1.75 per share, represents an attractive 160 per cent premium to VLA’s average share price over the last month. The company’s shares responded to the bid, rising 175 per cent for the day.