Excerpt from the article - key take aways. I highlighted a few clarifying points for new comers:
1) $265 Million USD = $351 Million Cdn = ~$2.20 per share
2) Validation of estimate from independent third party - Bloom Burton
3) A publicly stated opinion on right fit for Allergen
4) Allergen is on a major buying spree, and so are many others
5) First Berlin 98 cent target not including 1067 lightner valued = total target valuation of $3.20 per share
The deal is "imminent", which I take as coming soon enough.
I think 20 cents is an unbelievable deal for this fine gem, any way you cut it. Its a revenue stream waiting to happen for the first firm to get to the gate with a buyout offer or substantive licensing deal in my opinion.
Excerpt:
In our Expert Round Table Discussion about Skin Whitening, Attila Hajdu, Chief Business Development Officer of Sirona Biochem, explained that their scientists developed the safest and most efficient skin lightening compound in the world. He also said that they are very close to sign a licensing deal with a big company.
The management of Sirona Biochem came up with an internal valuation of 265 million USD for their new skin lightening compound by using the standard risk adjusted net present value forecast model which is highly accepted in the industry. It is only assuming a market share of 15 percent which a major global cooperation could easily attain with an appropriate marketing budget. This valuation has been validated by Bloom Burton which is one of the largest investment banks in Canada.
With a current market cap of approximately $32 million CAD and an imminent licensing deal for their new skin lightening compound, Sirona Biochem has a lot of upside potential and would be a good fit for Allergan. First Berlin Equity Research is valuing Sirona Biochem at 0.98 CAD per share based on their current pipeline where licensing deals are in place. The analyst has not even included a deal for the new skin lightening compound. Sirona Biochem closed at $0.20 CAD yesterday.