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TELESTA THERAPEUTICS INC T.TST

"Telesta Therapeutics Inc is a biopharmaceutical company. The Company is engaged in the research, development, manufacturing and commercialization of human health products and technologies."


TSX:TST - Post by User

Comment by beechguyon Dec 10, 2013 3:20pm
203 Views
Post# 21991318

RE:RE:RE:sale of animal health

RE:RE:RE:sale of animal healthSuperstar. Expect to be called a basher shortly. Anyone new asking any questions gets branded with a scarlett swath around here. What we do know. Our revenue was about 32mm last fiscal year. Our latest quarter was pretty good showing 17% YOY growth. Animal health transaction are done between 3 and 4 times revenue. Zoetis Traded up to almost 5 times revenue just after the transaction closed. I was told by Brian Ford (CFO)that suitors were factoring in products that are in our pipeline and not yet producing revenue in their pricing. So basing my assumption on 32mm with a 3x multiple the minimum acceptable bid should be 96mm. Factor in the 4.65 multiplier and Immunocidin, Oncocidin and Sin Susto as pipeline product not yet producing revenue and we could be looking at 150mm plus. Do I think that is likely. No? They have yet to do a deal that worked out in their favour in 10 years of trying. Evercore is a solid team they have representing them, but I still have an inkling that Bioniche will somehow screw this up. We have around 22mm in cash after the latest loan from Paladin. So we owe Paladin 37.5mm and another 25mm to the BDC and provincial governments. The only debt that needs to be paid out imminently is the 38mm for Paladin. 4 years ago Endo thought Urocidin was worth 140mm. I was told also by Brian Ford that it is worth much more now than it was then. There is zero factored in for Urocidin, zero for Econiche and the VMC, zero for our cash and the likelihood of a solid AH deal look pretty grim with our SP showing no signs of something imminent on the horizon. If you think we have a shot at 100mm for AH and any kind of Urocidin partnership, then buying at these levels is a no brainer. Right now the market is factoring in failure on both fronts. I'm somewhere in the middle. GLTA beech
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