I mentioned in my previous post that Psivida may tradesale their...

I mentioned in my previous post that Psivida may tradesale their oncology franchise, being their BranchySil technology for approx $40 million. I'll correct myself here, the current value of the of BrachySil after revision is approx $8 million.

However, In addition to the positives of the Pfizer announcement, there may be some decent gains in royalty revenue from the sales of Retisert in the next few years that is marketed by Bausch and Lomb. Bausch and Lomb's quarterly report should be out soon which should detail Retisert sales for the 1st quarter of CY 2007.

Psivida has foreshadowed in their half-year report that Retisert sales are expected to be negatively affected but substantially superceded by their advanced product Medidur when it hits the market after Phase 3 trials in a couple of years. In the interim though, Retisert could prove to be a good little earner.

As Supertramp or Dan Ash mentioned a few weeks ago, Psivida's half-year report revealed that whilst the asset carrying value of Retisert was revised downward accordingly, the value of Medidur was raised by $120 million. I believe that the value placed on Medidur is currently for DME only. If Pfizer or a second or third pharma licencee expand research and trials of Medidur technology for further indications such as AMD then the carrying value of Medidur will rise substantially further.

An extract from Bausch and Lomb's fourth quarter report foreshadows expectations for Retisert below (second last paragraph).

Expectations for 2007.

The Company’s pharmaceuticals category sales are projected to grow 10 to 12 percent, due to:

Several new product introductions, including the recently acquired and launched antihistamine product, Alaway™;
additional formulations for the Company’s lines of ocular nutritional products;
a new over-the-counter dry eye product later in the year; and the introduction of several products in a new preservative free multi-dose delivery format.
Continued increases in prescriptions written and market share gains for the Company’s lines of products containing loteprednol etabonate.
Continued sales momentum for the Retisert® drug delivery implant.
A return to more normalized growth levels for the Freda business in 2007, reflecting recovery from the negative effects of the MoistureLoc recall, and sales gains from the launch of some Bausch & Lomb-developed products, including Lotemax™ ophthalmic suspension and Ocuvite® eye vitamins.