GTC Biotherapeutics (fka GTCB)

[quantumdot]

>LFB Biotechnologies will also have a five-year option to participate in any future GTC financing, at the terms agreed upon between GTC and the other investors in the future financing, to the extent that LFB Biotechnologies' total common stock ownership level will not exceed 19.9% after the financing.<

I had hoped that GTC was going to really leverage the IP. The potential number of indications/therapies for their technology is huge. Why would they effectively guarantee this single partner 20% of the company (should LFB choose to utilize the above "non-dilute" clause?)

Does this not severely limit the number of potential partnerships/indications their technology can ultimately be used in? They can't keep giving away 20% of the company for each development/marketing deal. The terms of this early partnership seem - at least at first galnce - to contradict their business model.