However given deal posted yesterday for $14bn US is an example of where we are heading clearly. BP is also looking at potential end market value for an asset and if PMS ph 2 's are replicating with outstanding results then the potential here for other multiple indications is real incl Autism, how many drugs have this potential or end market??
There is no way Jon/team and Jefferies are getting something of this potential if in fact go for less than other deals like the one yesterday, taking a discount in TO for a far better product with far more revenue potential!!
If 2591 has this outcome there is no doubt it deserves 250% premium to be paid, with as we know multiple interested parties then I suspect this will happen, $20bn US for them for something like this is chump change, they will be returned multiples on this..
No deal until phase 2's complete this is a strategy to get multiple value, if you look at the approx $8 added from recent results and add another 3 times if in fact happens gives us $48 p/sh so 100% on this is a starting point in my view a 150% is $150, until the deal falls if it even does we don't know so really our best guidance is based on other deals getting done around us!
NEU Price at posting:
$24.04 Sentiment: Buy Disclosure: Held
(20min delay)