sunstar, thanks, nice post.
I think one of the problems with PPHM, which very probably will force it in a path of going it alone and no suffocating OLD style partnerships/acquisition, is Bavituximabs potential and broad application field.
A SAFE drug, with NO side effects of its own that is well tolerated, seems the mix will with Chemo, Radio and Immun therapy drugs, applicable in viriral, infections and digital imaging just to name a few. A drug that no only milds side effects from other drugs by activating the immune system but also improves the SOC and if we look at breast the Complete Responses and survival?
What is the price for a company that holds this drug? GILD, HALO, and even Genentech at the time had a less interesting pipelines and yet these companies are doing very good or were acquired for big prices.
Some, well say Genentech, had revenue from their pipeline and that makes a difference. If PPHM get revenue from Bavi after SUNRISE approval then what is keeping them from building up revenue and negotiate from an even stronger position.
But if we really would need to be acquired or partially acquired and then later the rest, then I prefer it to be a smaller company in which PPHM pipeline would weight on the revenue and drive that company. In that case cash+shares could be interesting in that we stay invested in a company that will be MAINLY driven by Bavituximab development.
IMO this is much better then Bavi being absorbed in a company that buys it in order to not develop it because then they make more money on plenty of other drugs or can keep medicating people in stead of curing them.
GILD has the profile to be such a potential company for PPHM.
100$ per share + 3 GILD shares? approx 100$+3x120$=460$ ?
That is about 40% of GILDs outstanding shares and equally dared as their previous acquisition. But they get the BIGGEST POTENTIAL EVER in return.
And what GILD needs is POTENTIAL that they can LEVERAGE, not pay for regular income where growth depends only on sales & marketing. With Bavi there is a complete platform to drive growth.
I am SURE GILD would make money on that in less then 5 years.
And GILD would never do the bleed that they would do in cash for a BYM or so.
Peregrine Pharmaceuticals the Microsoft of Biotechnology! All In My Opinion. I am not advising anything, nor accusing anyone.
