RE:RE:Accountability for Low-value Deals You're arguing for low-price deals for xB3, poof. I'm arguing that they should have much higher valuations consistent with other industry deals. Worse, you try to use the US $284 million AbbVie/Caraway deal to make your point. Laffer, that...!
This is important. Your argument that xB3 and the drugs it enables are unproven and therefore don't warrant higher milestone payments is uninformed and runs contrary to industry practice. All milestone payments are made as drugs are further proven and, therefore, derisked. Milestone payments exist to mitigate financial risk for the buyer and yet allow the seller to get a proper price for a finally-proven (commercial) drug. Therefore, the milestone payment terms are influenced by the size of the commercial opportunity that the drug presents.
Georgeparros, I think that Bioasis and its advisers know what drugs are worth. I think Bioasis needs the money, DrDR needs to report deals, the pharmas are driving hard bargains, etc, etc. For this kind of money, Neuramedy should have been turned down.
I believe that any drug entering such an immense market that Parkinson's disease (PD) presents is a drug that has blockbuster potential, especially since PD patients will likely require treatment for the rest of their lives.
I get that Neuramedy is providing the payload, Tomaralimab. But it's xB3 that could extend the original Opsona OPN305 (patent #8,734,794) and permit the treatment of PD patients. If xB3-Tomaralimab becomes a blockbuster, then the royalty had best be big because the milestone payments don't reflect the opportunity. But I don't have much confidence in undisclosed royalty terms, not after the 1% that Prothena got. Remember that Shire made a deal with Armagen for $11 million up fron and $225 million in milestones for a single LSD, Hunter Syndrome. Bioasis isn't even coming close on anything.
Worse, again, Bioasis is sending the signal that xB3 can be had on the cheap. I think that the Neuramedy deal with little up front, a secret royalty and only US$72 million in undefined milestones is not a good deal.
And the market completely ignored it. I didn't cause that. Bioasis caused it.
jd