Ariad Pharmaceuticals Inc fka ARIA

[jbog]

Jesspro,

I know it's hard to understand but in all reality 788 is probably worth $0 if using a current valuation.

That does not mean that 788 is worthless by any means. What it means is that someone is going to have to spend enormous sums of money and take huge risks to find out really if it is a viable product.

Those costs are why a partner would come to Ariad and say: Hey, I'll give you $20 mil upfront and a portion of the future profit if you let me put 788 through trials and FDA approvals. As anyone knows, many if not the majority of these agreements go nowhere.

And again, the $20 mil is a rounding error in the $5 Billion dollar deal.