TSXV:BTI.H - Post by User
Comment by
prophetoffactzon Feb 25, 2023 9:41am
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Post# 35305056
RE:RE:Protalix
RE:RE:Protalix"Unfortunately, Bioasis has already been paid by Chiesi for its LSDs. Future developmental, regulatory and commercial milestone payments are set at an average of $34.5 million per LSD. There is also a royalty that can't come into play for many years."
If the Chiesi/xB3 deal is worth C$500 million in upfront, potential milestones, and potential royalty payments in the future under riskless conditions it is closer to realizing that value now with the positive CHMP recommendation for Fabry. I understand the correlation between a positive CHMP opinion and ultimate European and FDA approval is very high. Chiesi also just received FDA approval for another ERT. How much work has Chiesi done towards an IND to further de-risk the xB3 deal over the last 2 1/2 years? How much closer to realizing the $500 million is the deal now? The deal could be significantly more valuable upfront right now. Protalix has doubled in price in the last four months alone. How much value is still left outside of the Xoma deal for BTI to work with in deal making? Midatech was talking up the partnerships and the value of the existing xB3 deals.
Chiesi is also now on a more certain path to becoming a strategic player in Lysosomal Storage. Lysosomal Storage is a key strategic focus. xB3 has become a more strategic asset now that Chiesi's path is more certain and it will be willing to pay for a second xB3 deal accordingly, upfront. Denali has also further strengthened the validation for ERT delivery to the brain recently and BTI has Hunter data expected in Q2.
There is a lot of potential upfront value BTI may be able to use in deal making right now. On the outside we can only guess. The outcome could be bankruptcy to significant surprise. Also, the J&J multi-product option appears to have progressed.