Sembiosys Genetics Inc. SBIYF

RE: Where's the Revenue!

[Biotech777]

I guess thats my questions here. Where do you see the revenue? I agree that they have shifted the burden of raising funds for clinical development, but a profit sharing arrangement is not a guarantee of cash flow. They could have a product approved and be selling and still see no revenue. Additionally, why do you think you will see any revenue in 2012? They still have to go through the SFDA approval process which while easier than the US for biosimilars, still requires clinical trials to be conducted. Also, China SFDA requires material to be used in clinical trials to be sourced locally unless it is CE marked or FDA approved, meaning they will have to transfer production and purification prior to initiating a trial.While I still think this is good news because at least it creates some potential, a deal with no upfront payment or royalty stream is not a strong deal. That tells you who was running the negotiations in my opinion.