Good question... and very possible. Some assume th
Post# of 30027
Posted On: 09/18/2014 2:50:37 PM
Re: biotechexpert #6714
Good question... and very possible. Some assume that since no JV has been finalized, no one is interested, or the JV partner walked away. The reality is none of us has any idea what is happening in those negotiations.
Since the discussion of the spinoff, and the ICON agreement, I have started considering another option to the JV partnership with large up-front payment.
Based on the recent discussions by management in the business update call, as well as the discussions related to the possibility of entering into a big pharma bidding war over LymPro, I believe there may be a strategy to sell LymPro or even the entire diagnostics division to a BP after the division is spun out to a separate entity and after revenue is ramping up and there are more options using multiple biomarkers in the analysis. The sale of the diagnostics division would certainly be more complicated if a partnership with a big pharma already existed (especially one that wasn't the high bidder for the buyout). Perhaps the company inked the ICON master service agreement to enable them to bring LymPro to market and keep the legal requirements much simpler for the future bidding war/buyout of the diagnostics division.
From the articles cannoli posted last week, a spinoff/buyout is one of the best ways to maximize shareholder value for the assets being sold. Perhaps shareholders should stop relying so much on their expectations of a large up-front payment and look at the overall strategic picture. I am confident this management team is exploring the best option to bring value to the company, even as shareholders whine over unmet expectations.
All those crying over unmet expectations and an inexperienced CEO should remember to include that part in their story when describing what a great investment they made here to their family, friends, and coworkers. Be sure to mention all the bellyaching and sleepless nights that accompanied the savvy investment decision that was made. You certainly wouldn't want to be a hypocrite by claiming you maintained confidence all along as the story unfolded. LOL
Since the discussion of the spinoff, and the ICON agreement, I have started considering another option to the JV partnership with large up-front payment.
Based on the recent discussions by management in the business update call, as well as the discussions related to the possibility of entering into a big pharma bidding war over LymPro, I believe there may be a strategy to sell LymPro or even the entire diagnostics division to a BP after the division is spun out to a separate entity and after revenue is ramping up and there are more options using multiple biomarkers in the analysis. The sale of the diagnostics division would certainly be more complicated if a partnership with a big pharma already existed (especially one that wasn't the high bidder for the buyout). Perhaps the company inked the ICON master service agreement to enable them to bring LymPro to market and keep the legal requirements much simpler for the future bidding war/buyout of the diagnostics division.
From the articles cannoli posted last week, a spinoff/buyout is one of the best ways to maximize shareholder value for the assets being sold. Perhaps shareholders should stop relying so much on their expectations of a large up-front payment and look at the overall strategic picture. I am confident this management team is exploring the best option to bring value to the company, even as shareholders whine over unmet expectations.
All those crying over unmet expectations and an inexperienced CEO should remember to include that part in their story when describing what a great investment they made here to their family, friends, and coworkers. Be sure to mention all the bellyaching and sleepless nights that accompanied the savvy investment decision that was made. You certainly wouldn't want to be a hypocrite by claiming you maintained confidence all along as the story unfolded. LOL
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