pgl valuation at 16.90

The note's from eG Capital.

They comment on Q3 Avastin sales, the relevence for PGL and how conservative their current valuation is (A$6.15).

They highlight as conservative assumptions:

- the deal size (US$100m);
- the drug price (half that of Avastin);
- the royalty rate (8%);
- no value on PI-166;
- no value on Medigen holding;
- no value on other IP (2nd generation PI-88, heparanase products, etc).

The A$16.90 valuation is simply the "unrisked" version (i.e. the drug making it to market) of the A$6.15 one (which discounts royalty revenues by 60% and total valuation by 20% to account for the risk of PI-88 not making it).

Can only imagine what it would look like if they weren't so conservative!

PA