Hi Taureanbull,
From my own experience in being involved in M&A within a different industry, the multiple that can be paid for a target is somewhere in the range of 10 to 15 times annualised EBITA but it is not unheard-of seeing companies sold for >20x.
It seems to me that Neuren will have extremely low direct and indirect costs thus seeing much of the gross profits flowing straight down to the bottomline with the retts drug. As for the other drugs if they go it alone, direct costs increas substantially because of manufacturing expenses but then one would assume a far better EBITA.
So lets say EBITA on retts worldwide PA is 1b the worth of this company could reach 15b.
Its an interesting risk to reward proposition at a current share price if $2.22
Hi Taureanbull,From my own experience in being involved in M&A...
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Mkt cap ! $2.578B | |||
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