Let's assume $10 in royalty payments from lets say just 10% of the 1.5M diagnosed per year, that's revenue of $1.5M pa.
With 1.5M Americans diagnosed every year - I think it's fairly rational to conclude revenue generation is going to easily be in the millions.
At 20% that's $3M in royalty payments from the US alone. (PIQ average Opex from FY16 and FY17 has been $3M)
God knows what the actual royalty fee is but I would be hard pressed to believe its under $10.
With commercialization in the US, it's almost certain that Australia, Japan, Europe & China will follow in due time.
In my opinion this agreement solidifies PIQ's future and underpins a reoccurring revenue stream in the millions.
Let's not forget the Busselton Healthy Study using Promarker platform targeting COPD and asthma is due in 1-3months. - If we are lucky we could have a positive outcome here.
Couple this with the CPR Agreement and expected increase in sales from the analytical division - the future looks good PIQ holders.
PIQ Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
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