Roche bought Ventana (VMSI) for $3.4B this week. The
diagnostics area appears to be heating up since Roche is #1
in diagnostics. VMSI had about $280M in revenue over the last
12 mos, but isn't focused strictly on cancer like BOCX.
Gives a rough indication though what BOCX's market cap could
possibly be worth if/when they start getting sustained license
fees. Unlike VMSI, I think the lion's share of revenue would
drop straight to BOCX's bottom line since they wouldn't have
to worry about marketing, distribution and don't have approx.
1,000 employees to pay. I was very interested to see that VMSI
had a P/S ratio of about 11X. If BOCX could ramp revenue up
to $100M which wouldn't be a stretch in my opinion, the stock
would have a price near $20 with a similar P/S ratio.
