whats the deal, page-3

An ongoing revenue royalty stream from GSK for sales of Relenza, which are expected to be ~$30M p.a. for the next 3 years before increasing!!!!


Dont we like these valuations! In June 2008, valuing Relenza royalties at $30M per annum! BTA’s announcement clearly show the expected royalties at $21M which had plummeted from $12M per quarter to a miserable $0.4M for the 3 months ending June 2008!! This are real reported figures and not imaginery make-believe figures like $30M !!

EV of $165M for Relenza royalties which makes up more than 83% of the BTA valuation. GSK is going to give up selling pandemic flu vaccine and sells Relenza! At the June 2008$0.4M quarterly rate, there is a dead man's chanceof achieving $30M p.a royalties!

Strip the Relenza royalties away (94 cps) and what is left of the Broker's valuation? 114 cps + 13cps (litigation costs) -94 cps = 33 cps! That's right $0.33 per share