YIN AND YANG Part 2, page-17

IMO big pharma understand the limitations in their ability to pick winners amongst junior biotechs (eg. just look at Galapagos... they did not turn out to be a winner for Gilead), so they are only willing to offer an average valuation based on an average success rate in the industry. Every junior biotech CEO probably pitches their drug candidate as the next big thing, it's hard for big pharma to separate the sheep from the goats. If you believe you have a well-above average chance of success, why would you accept an average valuation based on an average success rate?

Don't worry, the asset is going up in value with every day that passes and every box that gets ticked. There's no rush to lock in a sale price from our perspective. Management are obviously very confident that our time will come, and so should we!

With regard to the IP/patents being challenged, they would only try to steal a revenue stream that has proven it is worth being stolen. If Zilosul have established itself in the market and has demonstrated it is worth being challenged then congratulations my friend.. you're already a very rich man as the SP would be well north of $50. Don't forget we also get 5 years exclusivity plus a 30 month stay, so that's a minimum 7.5 years market exclusivity. So we're really talking about an issue which may arise in 2030 at the earliest (assuming NDA approval in 2024). If you're still worried, you can always cash out before then. And don't forget this is based on the premise that they manage to solve the mystery of how to replicate the Bene PPS compound by that time to create a generic. If that worst case scenario does eventuate then ohh well...7.5 years is still plenty of time to make billions in cumulative revenue...nothing lasts forever in this world and you make hay while the sun shines. Every brand name drug has a shelf life. There would still be a revenue stream for OA after 2030, just not as lucrative. There are also a myriad of strategies that big pharmas use to stall generics for as long as possible. Once Zilosul runs its course for OA there's still plenty of other indications that could potentially fill the revenue void.