Thanks guys - its getting interesting. The multi stream deals are important in more ways than the most obvious. Phylogica's end game strategy remains an exit by trade sale. Building the total deal value of a collaboration to $1B increases the potential trade sale price.
For instance, Pfizer's view of the value of the phylomer libraries with a deal value of US$135M is undoubtedly less than Jannsen who conceivably have a total deal value of $1B. Janssen, assuming the collaboration begins to deliver promising candidates, face the option of paying $1B in milestone payments plus royalties or buying the library for say $500m. As the number of multi stream deals increase so does the inherent competitive pressure to buy the library outright.
Watch the share register over the next 12 months for signs of movement towards the end game.
PYC Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
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