I'd pick #2 because I really don't believe the market have absorbed the s/term upside potential ___
Hi Pman,
I think it's a good time to pay close attention to the news coming out of GSK atm - news can't be too far off.
Rewinding back a couple of days:
"GSK is expected to close some units and open others and shift investment between groups, but there is not expected to be a dramatic reduction in the number of units."
"If any DPUs do get wound down, it is believed that Glaxo will aim to redeploy scientists elsewhere. Spending on research and development is expected to remain flat overall and Glaxo intends to maintain its focus on its key therapy areas." Glaxo units compete for £1.1bn of funding
That "flat spending" GSK speak of amounts to £1.1 billion pounds of funding split between 39 DPU's averaging out at just over £28,200,000 per group, which converts to about A$41,000,000 per group - not too bad, although I understand it won't be split even among the DPU's
What the market have certainly never considered factoring in, is that GSK carried out a significant restructuring of their R&D business model back in 2008, ahead of all major competitors so I believe OBJ holders have every good reason to remain very confident that this partnership will only strengthen moving forward. ___
I'm guessing some here have felt more a sense of relief in seeing a couple of runs put on the board, but imo we also shouldn't forget that no value has been factored in over the past 2 years, and let's be frank - Who's opinion in regards to the potential for OBJ's technology should be considered more qualified?
1).The Market, or 2).GlaxoSmithKline
GSK's stated opinions for external partnerships
"A wellspring of innovation exists in the global effort to discover new ways to treat and prevent disease. We recognize that leading-edge science lies both within and outside of GSK’s R&D labs. Externalization is key to our R&D strategy and we have a solid track record of successful collaborations that ultimately help bring new medicines of value to improve patients’ lives."
"The first thing we do is look for companies that have competency and expertise in our core focus but as you go wider than that, you’re looking for companies that can evolve their thinking so that they can actually help us grow our brand strategy – it’s not just about us finding a one hit wonder we’re looking for; we’re looking for organisations that can grow and develop as GSK’s needs grow and develop and hope that together, in a mutual way, we can benefit each other."
"We are looking to create alliances with innovative biotechnology companies that have a validated platform that potentially could be applied across multiple therapeutic areas."
"We seek out and collaborate with companies performing highly innovative and transformative world class science." ___
(20min delay)