Now that it has been flagged that a separation of the company...

Now that it has been flagged that a separation of the company into two - Fonda and Oncology - is on the cards, it is timely to consider the question of what the "pre-money" valuation of Oncology will be.

For anyone not familiar with the term, another way of looking at the question is to say "If an investor is going to contribute the needed $20 million of funding into the oncology company, how much of the business will they insist on owning subsequent to the capital raising?"

If the answer to that question is 50%. . . then your pre-money valuation was $20 million.

If the answer is 90%. . . then your pre-money valuation was about $2 milion.

So what is the pre-money valuation that would attract external investment? My unscientific guess - $25 million.

Keen to hear the thoughts of those with more sophisticated views. . . .