RE:RE:RE:RE:RE:RE:Knight / Antibe ... for those who don't know ...Yes - you could have looked at it (and similar) as a lottery ticket ... but with extras.
1. usually a loan component that pays double digit returns.
2. licensed geographies as a bonus.
3. shares as a hedge against future problems - which are often cashed out by Knight.
4. backstopped by assets to cover some costs, should the company be unable to fulfill the requirements of the agreement.
Don't forget though ... this partnership between ATE and GUD goes back a long way.
Goodman was on their board and knows their potential intimately.
Phase 2A/2B success takes ATE out of lottery ticket realm and moves it into a very reasonable chance for success. ATE has struck a deal in China (eyebrow lifting $100M plus double digit royalties) and they are now in the cofidential part of negotiations with Big Pharma for the first drug in the largest markets.
You need to have a few of these under your belt as they can really shape your future in ROW. You become an immediate ROW partner with a future acquirer of the small pharma.
All in my opinion.