RE:RE:The Spectral / OhtaniOr that adding PMX/EAA to their spinoff IPO of Vantive next July will increase the value of that spinoff by half of what they pay Spectral. Similar to the way the Dodgers believe that they will recoup more than half of what they are paying Ohtani just by the increased advertisement/marketing revenue that he will bring.
MM already pointed out in his Vantive post that the kidney care spinoff by Baxter is operating in a market segment that grows at a 3-4% rate. That's not a growth rate that analyst and institutional investors like to see when they invest in a company and that means that the IPO price of Vantive will definitely reflect this low single digit growth rate.
Having PMX/EAA as part of the spinoff/IPO will dramatically increase that paltry growth rate and that will greatly increase the spinoff's valuation coming out of the gate. Especially when label expansion is factored in, with things like open heart surgery and burn victim applications possibly doubling the revenue that septic shock alone will bring in. Then you have the very likely expansion to 3 or more cartridges, premium pricing due to high ARR, the off the chart profit margins of PMX and now you have a very attractive IPO with a possible double digit growth rate.
Vantive by itself is a very ho-hum IPO with a low single digit growth rate. Vantive with PMX/EAA instantly becomes an, oh yeah I gotta get me some of that type IPO. That is why this upcomming interim analysis is so important in my humble opinion.