However I believe there is merit in lining up factors for and against the partnership being formed.
For:
- MNK need to diversify their revenue stream into the mid/long term
- MSCs could be the next big thing, and their method of action
- MSB have two advanced phase 3 programs (one of these a potential billion dollar blockbuster) that have demonstrated meaningful clinical trial data and are safe
- MNK are committed to regenerative medicine
- MSB need funding
- MNK have established sales and marketing teams and distribution channels
- both programs nearing end of phase 3 recruitment, and as such there is little initial capital outlay to run these two trials to completion
- aGVHD could be FDA approved by mid 2018
- regulatory environment is currently very favourable for MSB in the US, with many benefits not yet realised
Against:
- MNK have high debt levels
- there is no immediate cash flow / sales to MNK from these two programs
- MNK could try grab most of the NPV from these programs
So to answer your question - the share price is a 'nice-to-have' but won't be a significant contributor in terms of the deal being done.
Good luck
MSB Price at posting:
$1.97 Sentiment: Buy Disclosure: Held
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