Ayala Pharmaceuticals Inc (ADXS)

[pharmeng]

Up and down. Not much to do but wait for data. It's the strategy they chose that will likely pay out more in the long term to get 100% revenue from the asset versus what ADRO did.

If you look at the agreement for Aduro and Janssen, they are only getting single digit to mid-teens royalties for ADU-741. Same with ADU-214. They get 10-30 million upfront, and more back loaded milestones.

They are likely only getting low-teens for royalty on the portion of sales exceeding a certain milestone, which is probably greater than 1 billion. So if the drug sells 1 billion, which is pretty decent, they'd likely get 50-90 million. I have not done the EPS calculation, but not sure that would support a huge market cap, and they are already at a few billion.

From ADRO's 10Q.
"The Company is eligible to receive royalties on net sales of licensed products by Janssen, its affiliates and
sublicensees at a rate ranging from mid-single digits to low teens based on aggregate annual net sales and based on the country of sale."