The note's from eG Capital.They comment on Q3 Avastin sales, the...

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