research reports and media, page-3622

Thanks Edski. Bought out for $43bn on sales revenues (not profit) of $2.2bn.

Anyone who has ever mapped out PARs potential sales revenues from Zilosul for knee OA alone, will understand the mind-boggling valuation we may one day command at 20x gross sales revenues.

I’ve always felt that, perversely, PAR’s greatest takeover defence was the fact it doesn’t own the drug. Many PAR commentators have claimed a lowball takeover is their biggest fear - but i’ve never seen that as likely. PAR are simply a vehicle for approvals with 25 year supply exclusivity (and who’s to say that doesn’t extend) upon those approvals. Indeed, anyone might argue that - to a big pharma capable of being that approval vehicle themselves - Bene would be ‘the goose that lays the golden eggs’ in our scenario, and a more accretive takeover target. What that would do to PAR and our supply agreement would come down to lawyers and ultimately be a huge risk to us. We, with our little A$400m valuation, are left to wonder and hope that such things don’t eventuate.

Say those things don’t happen though. Maybe (just maybe) once PARs approvals and PPS prowess is proven, and sales revenues are therefore rolling in for us, our sales and distribution partners, and Bene…we can look forward to a similarly swollen price/sales metric delivered by the market itself. Doesn’t hurt to drean, hey? And who knows, once that approvals prowess is proven, and with the potential runway of other PPS indications still stretching out to the horizon (think all the potential indications covered in the MDPI release above) PAR will come to be seen as the research and execution experts for this ‘platform technology’ in their own right, and not just the vehicle. On that day, PARs people will be seen as her greatest asset, and in the right environment, you, me, and Paul Rennie might just get cashed out by an enthusiastic big pharma co. Fun to daydream where we may be even just 5-10 years from now, and the possible numbers involved.