Port Quoting your post:Quote: There is an absolutely massive...

Port Quoting your post:
Quote: There is an absolutely massive potential for GSK to market Relenza and take market share from Tamiflu. We could be in for many years of production, but the market won't pay the multiple just yet... give it a few quarters with bullish comments from GSK and they just may. Tamiflu resistance will assist Relenza sales greatly and is the primary reason provided by GSK as to the shift in stockpiling attitude.


Quoting from another post: “I don't know, I think the announcement was quite factual and neutral.” in regard to the statement: Quoting Peter Cook:
“While the positive effect of this expansion on Biota may be significant and GSK have confirmed it has contracts to supply Relenza to over 60 countries, the announcement is focussed on increased manufacturing capacity for Relenza, not orders or sales. GSK has stated that additional regulatory approvals will be required and that the capacity increases are planned for the end of calendar 2009. The expansion of Relenza capacity and any increase in resultant royalty payments, will not effect Biota’s cash position until June 2010, at the earliest.

Port,
The whole reason why (if I may borrow your phrase) “won’t pay the multiple yet” is because the idiot Peter Cook is still talking down the good news, albeit you are of the opinion the Peter statements was “quite factual and neutral” and not withstanding your opinion that “give it a few quarters with bullish comments from GSK”.

It is time posters who came out strongly in support of Peter Cook talking down the market on some presumed benefit of stabilising the share price explain how talking down the market can stabilise the share price.


IMHO(Quoting from my previous post:) ”The best way to reduce the sp volatility is to reduce volatility in Relenza demand by GSK marketing it to best efforts and ensuring adequate product capacity. Instead we only see evidence of GSK re-acting to market demand and production capacity restricting supply/royalties thus adding to the volatility in Relenza sales.”

Anyone who like more information on this can read:
http://www.hotcopper.com.au/user_profile.asp?uid=60086