Biotech Values

[ghmm]

Why would sppi settle for not very much?

I don't have any special insight and I know everyone thinks this is a bitter feud between the two companies but my reasoning is as follows:

From listening to calls my impression on how Dr. Raj operates is to try to get something and limit risk (obviously arbitration is risky). An example is rather then get involved in a messy situation with GSK over the paragraph IV challenge for Imitrex the company first did a deal with Par then second settled (OK granted a lot of these get settled before litigation). Spectrum got 5 million and I believe about half of the net profit when its launched.

I think its in everybody's interest to kiss and make up. OK GPC shareholders may think we don't owe them a dime but I know all things being equal I prefer not to have a cloud hanging over me. Further more I think it could be done in a mutually beneficial way.
1-Give Spectrum Shares of GPC stock. Say 100,000 now and 150,000 that vest based on "milestones" being reached. This would be about 7 - 8 million and I don't think it would have any negative impact on GPC the dilution would be almost unnoticed and I think having the cloud removed would probably make it a net neutral situation. Having the stock vest gives GPC some leverage to keep SPPI from complaining (too much anyway).
2-OK everyone will think I am crazy but I really think licensing another of Spectrum's compounds could give GPC a bit more of a pipeline and SPPI certainly isn't in a position to do a big Phase 3 and launch. I think again issuing GPC shares would be a good way, perhaps Spectrum would want some cash too.

I won't ramble. Your posts are pretty knowledgeable so I'd be interested in your view on this.