Takeover commentary from Hashan de Silva in the recent past may be of interest:
"Simplistically in this scenario an acquisition might be a multiple of peak revenue with a discount to reflect the risks and costs of clinical development and time value of money. The typical price to sales ratio for pharma is approximately ~3x. When applied to our risk adjusted peak revenue estimate, this results in a risked valuation for NNZ-2591 at ~US$12.3b.
At the time of acquisition Skyclarys' projected peak revenue stood at ~US$1.5b by 2030, yielding a peak sales/price multiple of around 4.8x. Employing this multiple as a benchmark for assessing our valuation if we apply it to our forecasted peak revenue for NNZ-2591 of US$22b (as per table 4) and factor in a significantly conservative discount of 90-95% to account for clinical and regulatory risks, the resultant acquisition price still ranges between ~US$5.3b to US$10.6b". Kens
NEU Price at posting:
$12.14 Sentiment: Hold Disclosure: Held
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