Roth just rated IMU a buy, page-125

Cont...

So it appears Roth’s 13c “initiation of coverage “ target is well and truely at the low end of the range.

Always nice to have a bit of firepower up their sleeve for a compulsory update in 6 months time.And at some point an analyst may want to include revenues from the naked Vaccinia, or even a Her2/PD1vaxx combo as has been alluded to elsewhere. Or a CF33/ Her2 combo. We keep hearing combination therapies appear to have the best outcomes. Best outcomes equals higher sales.

Then the analyst should also consider how much BiG Pharma might actually be prepared to pay to buy Imugene outright, surely they would then be evaluating the future cash flows on a 100% earnings basis. Paying no royalties, keeping the lot to themselves. Building development costs into the modelling for all three or four products, using a fair discount rate, ( less than 20%) , sales figures comparable to those of other big sellers in their first 3-5 years, and comparative growth to “peak sales” rates, etc etc... the NPV conservatively comes out at between $2 and $3 minimum. Double that if you use sales figures that get into the Keytruda ballpark and a discount rate of 15%

Go go back and look at the information available on the Gilead /Immunomedics $21 Billion deal. Ask yourself what did they have in their pipeline, Trodelvy, that can’t be replicated by our BCell platform or CF33 platform. Ask what kind of assumptions were built into the modelling for Gilead’s takeover offer. One thing is certain, they could not possibly have used a 35% discount rate and peak sales of $1 billion, the maths doesn’t work.

So read the Roth research with your eyes wide open and thinking caps on.