If GTG settles with Applera or it goes to trial and they win the case GTG will be significantly re-rated. Further, you would they would have huge leverage over the remaining genetics companies who wanted to use GTG's Intellectual Property so you would expect an avalanche of licening deals to be signed. Based on the previous licensing agreement each of these deals would be worth millions coupled with a royalty for GTG on profits from development of whatever project the company is working on. Every company would realise that the sooner they get in the cheaper it will be for them, so there will be a race to sign up.
A lot hangs on this Applera case and all evidence so far points to a GTG win or a settlement.
In the meantime GTG have been building their other businesses apart from the licensing side with revenues growing very nicely.
This one is obviously a bit speculative but the upside is absolutely enormous. This company has the potential to be another Cochlear or perhaps even bigger. The next few weeks and months will be very exciting. Hard to put a cap on this one if the dominoes fall in their favour.
GTG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
