With Hep E revenue coming in, we are expecting around USD 500K per annum + an undisclosed upfront payment. Apart from the fact that revenue puts SLT into a new category, this revenue covers Select until the Hep A deal comes in.
Now, the Hep A deal is ready to be done, but I understand Select is giving a couple months more for 6 interested parties to get into a bidding war. Now that the US military have endorsed the Hep E and given credibility to Select, the pressure is on for these 6 companies. Select may do multiple deals over different regions. Seems to me that Select have been very careful this time to ensure they don't over promise by giving themselves until the end of 2004. Seems to me that Hep A news will be much sooner than that.
So, Hep E and Hep A are, in my mind, a foregone conclusion. Hep E worth only around 5-600K per annum, but Hep A worth 10 times that. That puts Select in positive territory.
The above is LOW RISK. It is unlikely not to happen.
Then there is Hep C. Now this is in dev stage. so there is a higher degree of risk. However, all is going very very smoothly so far, with the material received from Chiron. Now, there will be no time in commercialising this one as Chiron are tipped to be the commercial partner and have their guy on Select's board. This deal will send Select over 100 million conservatively.
So, the upside is HUGE, the downside risk is very low. The next 6 months is where all the activity is expected. That's the bottom line.
SLT Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
