Hi, http://www.technologytransfertactics.com/content/ipra/pharma/ Link above will give you a taste of what royalties are like. Vast majority of pharma royalty rates are less than 10%. Lani is unlikely to grab a figure as high as relenza imo. It faces severe competition from off patent relenza,as will relenza, initially thru the TRIP provisions of GATT[ala recent India/Mexico deal], and post 2013 when patent expiry for relenza commences. Development of a universal flu vax , also a danger, but probably not in the next decade. Other drugs in BTA's pipeline may or may not come to fruition, and even if they do, not necessarily that profitable[remember common cold drug very unlikely to attract anything but very restricted subsidy from governments]. Maybe management also believes in these difficulties, and with their stated aim of trying to build a big research company, they will be reluctant to spit out cash from short term windfalls? Question is, will I still be alive when, or if, this company finally pays out? Was looking to buy in, but the more I looked at this company, at the royalty rates,patent expiry and the virology of swine flu, put money in other things. Proved to be a lucky or wise decision so far. Hey, but I thought that BHP was overpriced at 16 bucks a few years ago, and sold. Wise not to take anything I say too seriously.
BTA Price at posting:
$1.10 Sentiment: None Disclosure: Not Held
