I wouldn’t be considering the current share price when thinking...

I wouldn’t be considering the current share price when thinking about any potential dividend return, especially when most of us believe how undervalued it currently is.



Using RAC’s own calculation on just three indications, estimated annual revenue is US$2.6bn. Presuming a healthy royalty of 15%, that would have RAC’s earning at US$390m (AU$584m). If all that revenue went to investors as RAC had sold out, that’s a yearly dividend of AU$3.39 for each of the 172.3m shares/options currently issued.

This obviously doesn’t factor any earnings from the other 24 known target indications of cancer where FTO regulation is believed to have some benefit or the cardio protection opportunity that is believed to be equal to total FTO value. Not to mention radiotherapy or kinase synergies, T2D or obesity markets.

If the science holds up in the clinic it really shouldn’t be too hard for a deal to made where both parties walk away feeling like they got great value. What shape that takes will be hopefully be worth the wait.

By the way, these are ‘back of a napkin’ numbers/calculations made by a biotech investing numpty, please feel free to critique or add to them yourselves.