Beyond my expectations!Great volume today and 0.40+ is about to be established as a baseline. Decent starting point in preparation for additional gains. We can expect multiple substantial NR this year. I thought that the next clinical test in China should be the next one, but the CRO-news today introduced an additional interesting development, at least beyond my expecations.
a) Short term anticipation of the need for multiple kilogram... In my book I'd say that multiple indicates at least three (3) kilogram that translates to 30.000 containers.
Why is this amount needed short term? It's way too much needed for clinical tests, seems like sales to a partner is reasonable.
I'm surprised of the production volume. Wouldn't really be needed if there's a long way to go to get permission of sales on a market - that I thought was neccessary. Maybe that's not needed? Or at least not in China? Interesting indeed.
b) Keeping an inventory that translates to 200.000 containers indicates massive sales!
c) We might get cash flow from sales this year, not only upfront or milestones. That would be awesome!
d) I think that the business model that the management seems to strive for in China indicates a much higher royalty. I've anticipated 15 percent even though 17.7 percent seems to be an average in the industry. But, what if they share profits 50/50 after cost reductions? That would really be a game changer and maybe propel the share price beyond my previous best case valuation of TFC-1067 - that's 7.52 CAD...