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Bullboard - Stock Discussion Forum biOasis Technologies Ord Shs V.BTI.H

Alternate Symbol(s):  BIOAF

Bioasis Technologies Inc. is a Canada-based biopharmaceutical company focused on research and development of technologies and products intended for the treatment of patients with nervous system, including central nervous system, diseases and disorders. The Company is engaged in the development of its xB 3 platform, which is a peptide-based technology, for the transport of therapeutic agents, in... see more

TSXV:BTI.H - Post Discussion

biOasis Technologies Ord Shs > Accountability for Low-value Deals
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Post by JDavenport on May 12, 2022 12:14pm

Accountability for Low-value Deals

I am not the only one concerned about the Neuramedy deal. The market didn't like it, either, so let's take a look at this.
 
Bioasis deals that we know about have not been all that good. Others have no reportable material value, at least not yet. So far Bioasis has all the appearance of a company that needs the money so badly that it's willing to do any deal to keep the lights on. The deals also suggest that potential partners may not be willing to pay very much, possibly because xB3's capabilities still haven't been proven. Basically, partners and licensees may not be willing to pay for work that should have been done long ago by Bioasis. We may not see good deals until it's proven that xB3 has the chops to at least achieve IND status, which is the approval for human clinical trials.
 
But there is something going on that is good. More companies are currently involved with Bioasis than at any time in the past. Despite everything, licensees and partners are taking the time and money to test xB3. This wouldn't be happening if they didn't think xB3 has potential. But It's also getting to be time that we saw some progress with these collaborations, at least with Chiesi. I worry about the lack of reported progress from Chiesi. On June 29 it will be two years since that deal was announced. Crickets...!

Roadshows - Q&A Time for DrDR
 
I think the upcoming roadshows are coming at an good time. Shareholders need to start thinking about the direction they want Bioasis to take. (AGM, voting, etc.) I think there are some questions that need to be asked of DrDR.
 
Agreed upon milestone payments are good indicators of the anticipated value of xB3. If xB3 doesn't work, or doesn't work well, then the pharmas aren't at much risk because they won't have to make milestone payments, no matter how large or small they are. If xB3 does work but the payload doesn't work, then it's the same situation. But if xB3 and the payload work, and the partner wants to advance the drug, then milestone payments are good investments for the pharma and the payments should reflect the value of the opportunity.
 
So, why can't Bioasis negotiate good milestone payments? Should shareholders accept Bioasis management's opinions of the value of xB3 as it is indicated by the low value of milestones the company has negotiated? Is this all that management thinks that xB3 is worth?
 
And about Bioasis finances, if the deals, including the Neuramedy deal, have low value because Bioasis badly needs the money and isn't in a position to negotiate from strength, does this mean that Bioasis no longer has access to the Lind funding?
 
But if Bioasis still has the same access to the Lind funding as originally announced, and if Bioasis is financially strong enough to negotiate from strength, then why does the Neuramedy deal have such low milestone payments for Parkinson's Disease, a disease that has huge potential commercial value? If Neuramedy turns out to have a capable PD drug, then what's the risk to them to pay a good price for the opportunity to advance the drug? If the answer is that Neuramedy can't afford proper milestone payments then Neuramedy is in the wrong business.
 
The Argument
 
Milestone payments should reflect the potential commercial value of the drug and xB3's part in making the drug possible. As such, the value of future milestone payments to Bioasis should reflect the future value of Bioasis in a proportion to the value of Denali. A drug put in a human brain by xB3 should have comparable value to a drug put into the human brain by Denali. There is little risk of such valuations to Bioasis partners because the payments aren't made unless xB3 performs as well as, or better than, Denali's technology, a comparison that have heard from Bioasis many times..
 
I think Bioasis shareholders should demand accountability for these low-value deals, and should expect better in the future. I don't think there's much middle ground for xB3. It either doesn't work and is worth nothing, or it works and is worth a hell of a lot more that Bioasis is getting.
 
jd
Comment by prophetoffact on May 12, 2022 1:16pm
This post has been removed in accordance with Community Policy
Comment by Georgeparros on May 12, 2022 3:27pm
Hi jd, Would you say DrDR or John Proffett are out of line? I thought Shadow Lake Group were the expert in valuing a collaboration between xB3 and a licensee. I think the more the merrier. It's one drug, no exclusivity, and we don't know the royalty rate. We got cash from a private biotech company, probably operating at a loss? Steal imho. I think getting one million from this Korean ...more  
Comment by greaterfoolFred on May 12, 2022 3:38pm
I think it's a good deal.  At this point any deal is a good deal.  I say let any pharma that wants to, try one drug for no payment, just milestones and royalty.  All we need is one success to change the game.  Then no more freebies.
Comment by prophetoffact on May 12, 2022 4:02pm
This post has been removed in accordance with Community Policy
Comment by JDavenport on May 12, 2022 5:51pm
You're arguing for low-price deals for xB3, poof. I'm arguing that they should have much higher valuations consistent with other industry deals. Worse, you try to use the US $284 million AbbVie/Caraway deal to make your point. Laffer, that...!   This is important. Your argument that xB3 and the drugs it enables are unproven and therefore don't warrant higher milestone payments ...more  
Comment by MBT123 on May 13, 2022 1:32am
JD your a joke...You defended every single NR this train wreck released...Argued...the market doesn't  understand can't figure it out blah blah blah..Now your living in your trailer same as you were before saying this NR is a joke! Same as every single other one!!! Look back at history not a single NR ever EVER has the SP ever ended positive..Not a single one in 10yrs those are facts! ...more  
Comment by prophetoffact on May 13, 2022 7:01am
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Comment by prophetoffact on May 13, 2022 8:17am
This post has been removed in accordance with Community Policy
Comment by chrispi on May 13, 2022 9:05am
Well I have to side with prophetoffact on this one. LIke he says, total it all up and it could be a well over $600 million deal and BTI doesn't have to invest in it anymore and can license other companies and pursue its own Parkinson's drug. That's the key, this is a non-exclusive deal in the Parkinson's space. Who cares if it isn't the best deal that Bioasis has every ...more  
Comment by G1945V on May 13, 2022 10:19am
Crispi : What comes to mind going in that direction, is what JD stated a few posts back. Bioasis to become not too palatable as an acquisition if that's what we want as the end game with this investment. "And there is an increasing problem with Bioasis. With more and more licensing deals, collaborations and partnerships that Bioasis enters, the less attractive Bioasis may be too large ...more  
Comment by prophetoffact on May 13, 2022 11:48am
This post has been removed in accordance with Community Policy
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