Avid Bioservices Inc (CDMO)

[tech0200]

'They are not going to give it away for breadcrumbs and that is what BP expect. In this case 25 Billion $ would be breadcrumbs'

I think that they could have done a fair deal long time ago. It would go something like this: PPHM provides the patented drug for all these indications, the partner with the money funds all the trials and covers all of the costs.

The only think that is left to do how are they going to split the revenue in a fair way. Let's say 50-50 is fair as probably most would agree. Once this has been agreed upon it doesn't matter whether the total sales for all of the indications and regions amounts to 1 billion, 20 billion, 200 billion, 800 billion. The greater the revenue the more ecstatic both partners will be.

You can have clauses like if the partner refuses to fund all of the trials that were agreed upon or market the approved drug in all of the markets that it was agreed upon the contract is null and void. That is a heck a lot better than just talking and talking for years. Like they say talk is cheap.

Look at VRTX. They got a partner with a phase three trial and a few phase two trials. A market cap of 27 billion, $2 per share loss. I don't think they have an approved drug yet. If they did and they are still losing over $2 per share and still losing about $500 million a year they would eventually go out of business.