They will pay a price that is cheaper than the sum of the royalties (and milestone payments) that will flow to ACR.
I believe that it is way too early to make a call on how big it will be or when Eli Lilly can make a rational decision on the takeout strategy.
Eli Lilly will start seeing the sales figures roll in over coming months.
They will look at the trends and at some point - perhaps by Christmas? - they will be in a position to forecast what the royalty stream and the milestone outgoings are likely to be.
At that point they will be in an informed position to either take out ACR or ask Mr Treager to come over for a chat......
In all of this, lets not forget that ACR does have a number of products in developmet and the technology platform has not run out of potential new applications.....
So, shareholders should just be patient and hope that the sales and marketing goes well and just enjoy the ride.
Slow accumulation of stock seems to be underpinning share price since they went ex dividend.
DYOR
ACR Price at posting:
$3.35 Sentiment: LT Buy Disclosure: Held
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