Bioniche options. Excellent posts last night. Welcome back Corp - havent heard from you in a bit. I will say this; the current management does have a dismal track record in the selling assets department. Selling Bioniche pharma was a colossal joke. 30mm and resold few years later (with proper managment) for 550mm. This time Evercore is looking after the negotations, even still, to sell now just as the bud is inching out of the ground, feels like we might be repeating history.
GW thinks that Animal health is "highly scalable". Bioniche has always had the narrowest of vision when it come to their products. Selling Sin Susto to Vets instead of directly to the Bigs is ridiculous. They strive for hundreds instead of millions of doses. Immunocdin has only had a quarter to penetrate the canine cancer market, plus they have not even attempted to market any of their products to the actual end user (the dog owner -see Givemeabreak). Oncocidin's on its own could be 100% of our current AH revenue... at least. In 16 months (with the right marketing and sales force) we could potentially double our revenue.
I had a tough time finding animal health buyouts, but I have seen anywhere from a little over 2 times revenue, to almost 4 times revenue. If we are looking at around 3 or 4 x revenue (I am told our AH suitors will be factoring in our new products potential revenue in their offers) Then at 3 x 32mm = 96mm. 4 x 32 = 128mm. 3 or 4 x 64mm starts get real interesting. Then we could get a real dividend. With a new agressive CEO that's mandate is pushing AH revenue and spending serious resources to make that happen, (instead of dabbling with Econiche and VMC 3rd party garbage), we could get real returns in short order.
Sign partnerships for Urocidin (60 to 80mm up front). Sell the validated VMC and Econiche. Another 50mm and lose 700k of burn. Our cash issues are gone and we can start to grow AH to levels it should be before unloading it. Sell AH in a year or two and keep Urocidin for the eventual homerun.
Sure if a suitor comes in at 120 to 140mm, we'd have to consider it. Dont even float 75mm at us. 2.3 x revenue with our pipeline? I rather eat glass. Lets get a meeting set up and see what both parties have in store. One thing for sure as Zep has stated; the day GW takes over our board, (if their motives are true) our SP probably doubles if not triples once the RCP and cash issues have been cleared up. GL
beech