PharmaCyte Biotech Inc (PMCB)

[Gmc2020]

Licensing not buyout

Just my opinion but here are my thoughts as to why.

We know Confidentiality agreements were signed. My speculation as to the reasoning for this is that a company got preferred pricing on the licensing and possibly an exclusive for the pancreatic treatment (for a short time) in exchange for funding of other trials. Under the SEC regulations this type of agreement would be eligible for confidential treatment because the licensing price given would not represent the market price to other companies due to the exchange for funding of other clinical trials.

Secondly, we redesigned the pancreatic trial as to not compete with celgene's current gold standard. This was likely part of the negotiation above to preserve celgene's gold standard revenue for the time being. I think that this was An arbitrage move by celgene, and they likely promised a significant amount to fund the diabetes treatment to protect their current position in the pancreatic Market.

Vonhoff's and others relationship with celgene further supports this theory.

IMO, if this is the case, it is a brilliant move for both parties.

Celgene would protect there gold standard and get discounted licensing for instances where their gold standard is no longer effective (and likely the future gold standard)

PMCB, would get funding for the diabetes trials (a much larger market) without having to take on debt or take on significant dilution or have to sell the pancreatic treatment to fund other trials. Secondly, they would receive licensing revenues for a currently unmet need.

Thoughts and opinions are welcome