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Posted On: 06/13/2018 11:02:05 PM
Post# of 30015
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The company is a smaller company that is why if it was actually AC Immune, it would be huge news. They're market cap is over $500 million. If AMBS is going to be a "significant shareholder" that implies the company is not very big.
It is definitely NOT Adamas. First, the company is a "clinical stage" biotech- Adamas has actual commercialized products. And the obvious reason its not Adamas, is a company doesn't spend tens of millions of dollars on a product that if it works serves the same need as the product you already have. You spend millions of dollars on other products to expand your market, not compete against yourself.
The statement "a significant shareholder" concerns me. We were a "significant shareholder" in Avant and we all know how that turned out. A company can easily dilute any shares we get today later as they raise more funds themselves or their stock declines for whatever reason- we just don't have much control. I would assume though that we would get some kind of milestone payment if the trial is successful and share in the upside if eventually there is a deal later with a big pharma co. with successful phase 2 results.
I think AMBS can get some money up front, but it may not be that much. But I think as long as they are able to get at least $5 million either from this partner and/or a combination of the partner and other sources to meet the tender exchange requirement and the partner is going to pay the $15 million or so to complete the Phase 2 trial, it will be considered a success at this point.
It is definitely NOT Adamas. First, the company is a "clinical stage" biotech- Adamas has actual commercialized products. And the obvious reason its not Adamas, is a company doesn't spend tens of millions of dollars on a product that if it works serves the same need as the product you already have. You spend millions of dollars on other products to expand your market, not compete against yourself.
The statement "a significant shareholder" concerns me. We were a "significant shareholder" in Avant and we all know how that turned out. A company can easily dilute any shares we get today later as they raise more funds themselves or their stock declines for whatever reason- we just don't have much control. I would assume though that we would get some kind of milestone payment if the trial is successful and share in the upside if eventually there is a deal later with a big pharma co. with successful phase 2 results.
I think AMBS can get some money up front, but it may not be that much. But I think as long as they are able to get at least $5 million either from this partner and/or a combination of the partner and other sources to meet the tender exchange requirement and the partner is going to pay the $15 million or so to complete the Phase 2 trial, it will be considered a success at this point.
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