Sorrento Therapeutics Inc (SRNE)

[dia76ca]

Chuck does some interesting analysis on SP-102 potential.
"Think about forward looking revenue / earning and how that impacts valuation. Typically, for this segment, SP value is typically estimated based on 9 to 11 times revenue or 22 to 24 times earnings with typical revenue contribution of over 40% margin to ebitda.

At $5 to $6 billion potential REVENUE for SP-102 that means Valuation at $50 billion for SRNE based on this product. If we use 280 million shares to estimate SP, we have a SP of $178. This takes the value over Ji’s threshold so he would get his full comp package on a BO at this value. For any offer of BO, the purchaser would need to offer a premium of at least 50% over valuation estimate. This would put a post SP-102 BO offer in the $400 dollar range which would be ok by me."