Posted On: 05/18/2013 1:21:54 AM
Post# of 72447
Love the posting out of context with your own twist. What I said in context:
I only use licensing as one tool for valuation of CTIX. IMO, the first license will be for Prurisol (yes, if it works in humans), and for more than $1 billion total upfront and benchmarks, unless some major player first makes LE an offer he can't refuse for K.
Yeah there are a lot of different approaches to the license structure for K. One fat license to bring K to market, or a bunch of small ones for combination therapies. The latter really isn't the most efficient way for a small biopharma to work. Much better to issue one license to one major pharma with international ties and presence. Then let them work out any mini-licenses.
All in all, I will be very surprised if CTIX doesn't just get bought out for a hefty sum with the starting bid in the range of Pharmasset, $11 billion.
It takes a long time to get full value from multiple licenses for a single drug. Sometimes it's just more expeditious to take a billion plus royalties (20% range), or to partner. But, partnerships are expensive when the agreement includes cost sharing for 50% of the total future sales (emphasis on future).
I only use licensing as one tool for valuation of CTIX. IMO, the first license will be for Prurisol (yes, if it works in humans), and for more than $1 billion total upfront and benchmarks, unless some major player first makes LE an offer he can't refuse for K.
Yeah there are a lot of different approaches to the license structure for K. One fat license to bring K to market, or a bunch of small ones for combination therapies. The latter really isn't the most efficient way for a small biopharma to work. Much better to issue one license to one major pharma with international ties and presence. Then let them work out any mini-licenses.
All in all, I will be very surprised if CTIX doesn't just get bought out for a hefty sum with the starting bid in the range of Pharmasset, $11 billion.
It takes a long time to get full value from multiple licenses for a single drug. Sometimes it's just more expeditious to take a billion plus royalties (20% range), or to partner. But, partnerships are expensive when the agreement includes cost sharing for 50% of the total future sales (emphasis on future).
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