report

New Bioshares report out, a few points in my own words:

1. Capital raising at a significant discount as the sp has been near 70c in the weeks before.

2. Funds raised will put the company in a stronger position to finalise licensing negotiations.

3. Expected sale price of Vitrogro will be close to $100 per week per patient.

4. economic studies say a saving of $260 per wound should justify the $100 pricing.

5. The benefit is that it wont be a big expenditure for hospitals and should allow for more take-up especially if it reduces the length of hospital stays.

6. TIS are looking to get a deal that returns double digit royalties whilst keeping manufacturing and charge a cost for this also.

7. Potential for this to be a $billion product and TIS should receive in excess of $100m a year, a lot of work to be done though before this happens.

8. 4 major groups are in negotiation with TIS for the marketing rights. There is less urgency for the deal to complete due to this capital raise and TIS will likely wait for the Euro trial results which could add value to the product. Investors shouldn't expect a large deal due to low unit sale pricing and sales forces needed to sell VitroGro.

9. results of trial end June 2011, November 2011 for Europe approval and filing for an IND in US by years end estimates.

10. Strengthening of management team needed to meet key dates as have been missed previously, TIS have indicated 2 more staff by year's end.

11. They reinterate the potential revenues of $100m a year but say key to this is the commercialisation of VitroGro and selection of the marketing partner and terms of the agreement.