Hi guys,We still have a long way to go before we have our $1.50...

Hi guys,

We still have a long way to go before we have our $1.50 per share, and I certainly will hold onto my shares.

good luck to all

jojo


http://www.bionomics.com.au/siteFiles/files/Bell%20Potter%20-%20Bionomics%205Jan12%20Report.pdf

The deal is the largest seen for a Phase I asset in the Australian market. The
upfront payment is smaller than we expected, however, the total deal size and
our belief that the undisclosed royalties would be in the 14-17% range leave us
extremely excited for Bionomics future revenue streams from the product. It is
important to note that BNC210 is targeted at a US$12bn global market for anxiety
drugs. We see today’s deal putting Bionomics on the path to self-funding for its ~$7m
annual burn rate while awaiting further payments in the form of milestones and
royalties to negate the possibility of capital raisings in the near future. The deal would
allow BNO to prioritize the development of BNC105 and other development programs.
Valuation and Price Target
We re-iterate our Spec Buy Recommendation on BNO. We value Bionomics on a
probability-weighted DCF basis at $1.41 base case and $2.51 optimistic case. Our
target price of $1.50 sits at the low-point of our DCF range. Our valuation and price
target remain unchanged for now given that the larger than expected deal size is offset
by the pushing back of the launch timeline for BNC210 and the smaller upfront
payment. We view BNO’s announcement today as a start of a series of significant
news flow over the next twelve months assisting in the stock being re-rated to our
target price of $1.50.