I agree that current prices could look pretty good once the...

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01/07/15

21:17

Post #: 15565608
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Originally posted by groberts ↑

Sad to see Medivet go myself - it generates a lot of positive publicity and has great potential in the years ahead. It’s also a business with its genesis and ownership in Australia that will now likely become a fully-owned US company.

The R&D program into allogeneic stem cell products is going to be expensive. Getting FDA approval for each treatment option such as osteoarthritis and atopy will involve a separate trial before being allowed to hit the marketplace. Each one will take millions of dollars. A large chunk of the $4.5 million Aratana deal with Vet-Stem will be for the FDA trial side of things.

Medivet will be more looking for a suitor that will invest the millions required to increase sales staff and fund new allogeneic products to market. MLA will be focused on the purchase price - hopefully getting the optimal mix between the two for both parties.

Medivet acquiring the rights to the human side in MB-007 opens up the possibilities of cross licensing to human stem cell companies. If the suitor had deep enough pockets there would be the possibility of doing it directly perhaps.

Often lost is how well the human healthcare side of things is going. A $900K profit for the first 6 months of FY2015 means it’s humming along. Once the Medivet transaction is completed this will be more sharply brought into focus.

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I agree that current prices could look pretty good once the divestment is done.

-They have $2m cash and no debt from the last quarterly.
-Suppose they get in the region of $10m for Medivet which is what they paid.
-Then you are effectively getting a $1m+ NPAT growing business for nothing at these prices.

But what will they get for Medivet? Will the remaining business deliver $1m+ NPAT?

MLA Price at posting: 7.8¢ Sentiment: None Disclosure: Not Held
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I agree that current prices could look pretty good once the...

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