Kitov Pharmaceuticals Hldgs L Sponsored ADR (KTOV)

[salgovernale69]

Again, though, my "feelings" based on a call with the CEO and the reality of what is going on are probably not all that much aligned. In terms of what a licensing deal would do for the valuation, hard to say. I have to think any licensing deal would include an upfront payment of more than their current market cap of only $30M plus a hefty royalty, so I can't imagine it wouldn't at least double PPS.

While we all like to throw around lofty price targets of $30-$60 a share, the reality is that companies aren't bought out for 900 - 2,000% premiums. That just doesn't happen in the real world. Therefore, current buyout offers are probably low, so a licensing deal to boost the company closer to or more than a $100M valuation in the near term is probably ideal. That licensor may then buy the company for closer to our numbers a bit later on.