I’ll file that idea under Anything Is Possible. However, I don’t think that scenario is realistic. Here’s what I think Anavex should do, or try to do:
1) Do a licensing deal for Blarcamesine with a big pharma for worldwide rights to AD. Get $15-$20 million up front, plus milestones through to commercialization of up to $500 million, plus low double digit royalties on product sales. The partner takes over and pays 100% of the cost of final clinical development if needed, regulatory filings, and marketing. (AD is too big a market for a small biopharma to manage.)
2) Give the same company an option to license Anavex 3-71 for schizophrenia on similar terms for a set period of time. If they’re not interested, grant an exclusive worldwide license to 3-71 to another big pharma.
3) Keep all rights to Rett and other rare disease indications. (A small company like Anavex can address rare diseases markets for its own account.)
An AD licensing deal now would immediately bring Anavex to the attention of deep-pocketed biotech investors who would pile into the stock. Such a deal would also get global healthcare media coverage and would attract serious interest from other potential partners or acquirers. All of that would position Anavex to raise a substantial amount of money from deep-pocketed investors through a more traditional approach. (No more ATMs with a vulture investor.) The stock might even get $100 to $200 a share on the announcement of such a deal alone.
The big question is, Does Anavex actually have the goods? And if they do, why hasn’t a deal already been done? Surely there is nothing to stand in the way of it except perhaps Missling’s inflated ago.
Regardless, what I’ve described is a plausible scenario. It wouldn’t be the first time such a deal has been done.
