The Sum of parts has changed, so we should not be concerned...

The Sum of parts has changed, so we should not be concerned about the recent down turn in price, needless to say who was the lucky bugger that got some on Friday for 1.75, they are probably still celebrating.

Peptechs Sum of all parts attempted analysis (This is in my humble opinion only and backed by some figures provided by southern cross in their last years analysis and other assumptions made by myself)

SUM OF PEPTECHS PARTS Base Opt Case Base CPSOpt CPS

Royalties and license fees (A$m) 100.0 130.0 $0.61 $0.79

PN0615 anti-TNF monoclonal (A$m) 26.5 71.1 $0.16 $0.44
(DUE TO BE SUBSTANCIALLY RERATED)

PN0621 anti-TNF dAb (A$m) 94.7 166.1 $0.58 $1.02
(DUE TO BE SUBSTANCIALLY RERATED AND PHASE 1 TO COMMENCE BEFORE END OF FISCAL YEAR)

Ovuplant and Suprelorin (A$m) 6.4 40.0 $0.04 $0.24
(DUE TO BE SUBSTANCIALLY RERATED NOW THEY HAVE EU APPROVAL AND IN A YEAR WITH US APPROVAL)

Biosceptre products (A$m) 35.2 64.2 $0.22 $0.39
(PHASE 1 TO COMMENCE BEFORE END OF FISCAL YEAR)

Promics PMX Compounds 10.0 50.0 $0.06 $0.30

ScanCell Compounds 10.0 50.0 $0.06 $0.30

Estimated Cash (A$m) 180 Million $1.09 $1.09

New Discovery Platform (A$m) 100.0 200.00 $ 0.61 $1.21
(JUST WAIT AND SEE, EVEN GREATER VALUE THAN DOMANTIS EVER WAS, THIS IS THE NEW JEWEL IN THE CROWN. THIS COULD BE WORTH SUBSTANCIALLY MORE)

Total value 562.8 789.4 $3.43 $5.78

Shares on issue (million) 164,077,160


Needless to say the value in Peptech far exceeds the current 1.80s

Mid mark between a $3.43 valuation and a $5.78 valuation is $4.60

The company would be very attractive as a PE or large Pharma buyout, did any of you know what big pharmas spend a day on research, I will give you an example.
GSK spends 330,000,000.00 a day. THAT’S 330 MILLION, Look what they would get if they brought PTD and for only 1.5 days research spend.

In one year PTD would have a very successful animal health division to sell and not cheaply.
In one year animal health will greatly increase its revenue from sales in the EU
In one year the results achieved from Phase 1 of PN0621 will be outstanding and ready for Phase 2. (24 Billion dollar market in 2012)
In one year PN0615 will be ready for Phase 1.
In less than a year the true value from the new platform will be realised.

Just my opinion