Ayala Pharmaceuticals Inc (ADXS)

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As a general rule of thumb, biotechs tend to trade on (discount future cash flow) based on a multiple of revenue that can be 5x or 6x annual revenue produced by its drugs. For example, Jazz is currently valued at $7 billion and its latest annual revenue was $1.3 billion. By comparison, Imclone where Dan used to work was sold for $6.5 billion to Eli in 2009. When doing a search on Erbitux revenue (which ImClone owned and the reason Eli purchased the company) produced revenue of around $700 million in 2011. Point being is that when Dan say he think best-case scenario ADXS would be worth what ImClone was sold for, it's grounded in real potential of ADXS' platform treating multiple cancers. I believe one of the analysts who covers ADXS pegged our AXAL's franchise as generated annual revenue up around $300 million. Then when you factor in HER2 for breast cancer and PSA for prostate cancer, the annual revenue potential could get up toward $1 billion. Mind blowing, but hard to see down here at the low valuation we're at. Obviously an incredible buying opportunity if you believe in the platform (and take a leap of faith that Dan won't continue to dilute us to oblivion and that we will actually see share price appreciation not just dilution).