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Posted On: 12/18/2019 11:07:48 AM
Post# of 148899
Great question, and would be nice to get some sort of clarification.
Not that anyone asked, but here are my two cents. IMO most negotiations around licensing deals were based on $60,000 as that was provided from Syneos Health, an independent 3rd party in these discussions and makes the most sense to me to remove internal biases and situations (cannibalization of sales for GILD and ViiV). Eventually, we will see if this price holds or how it changes, but seems like a reasonably fair middle of the road number based on the fluctuations from $24,000 to $120,000 since I've been following CYDY.
Secondly, say Vyera prices it higher at $100,000. That will impact their sales, revenue and gross profit margin....and as a result also CYDYs for HIV. However, if cancer works out as I expect, a higher price is still reasonable and would likely be gladly accepted by insurance companies for deadly cancers. This is a win for CYDY with the assumption that we keep cancer or license out for similar royalty to 50%. Sure there are positives and negatives to this deal and ultimately we will not know all the results until things play out more.
Personally, I am glad the revenue future is secured with all the boxes checked other than BLA now and future dilution (based on the previous RDO cycles) are coming to an end. IMO this license deal removes pretty much all of the remaining risk with this investment.....and I expect many other license deals in the future for 8 other major markets (MM), NASH, cancer, GvHD, MS, etc.
Not that anyone asked, but here are my two cents. IMO most negotiations around licensing deals were based on $60,000 as that was provided from Syneos Health, an independent 3rd party in these discussions and makes the most sense to me to remove internal biases and situations (cannibalization of sales for GILD and ViiV). Eventually, we will see if this price holds or how it changes, but seems like a reasonably fair middle of the road number based on the fluctuations from $24,000 to $120,000 since I've been following CYDY.
Secondly, say Vyera prices it higher at $100,000. That will impact their sales, revenue and gross profit margin....and as a result also CYDYs for HIV. However, if cancer works out as I expect, a higher price is still reasonable and would likely be gladly accepted by insurance companies for deadly cancers. This is a win for CYDY with the assumption that we keep cancer or license out for similar royalty to 50%. Sure there are positives and negatives to this deal and ultimately we will not know all the results until things play out more.
Personally, I am glad the revenue future is secured with all the boxes checked other than BLA now and future dilution (based on the previous RDO cycles) are coming to an end. IMO this license deal removes pretty much all of the remaining risk with this investment.....and I expect many other license deals in the future for 8 other major markets (MM), NASH, cancer, GvHD, MS, etc.
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Please do your own due diligence. All my posts and comments are not to be considered investment advice.
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