The detail hidden from view has somewhat coloured the markets perception of the Janssen collaboration. We were excited, however, in August 2010 when the Astrazeneca collaboration was signed with total deal value of up to US$100m. More excited in December 2010 when the Pfizer deal was signed with total deal value of up to US$135m. Roche (undisclosed value), Astrazeneca and Pfizer have all been single stream deals. The collaboration and option agreement with Janssen is a multi stream deal with scope for the development of more than 10 drug candidates.
Whats the multi stream deal potentially worth? One is tempted to multiply the average of the last two deals by 10 i.e. total deal value of $1.175B. That would be one big number which if correct would suggest the market is massively under-estimating the value of the latest collaboration - a market somewhat spooked by 26m shares being dumped by a former major shareholder. Yes, its true that missed guidance has also contributed to the markets lack of confidence.
The Chairman recently stated that "the next 12 months promises to be a transformational period given the quantity and quality of our current discussions." It would appear that there are more multi stream deals on the way.
PYC Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)