Biotech Values

[the_busy_ant]

But then why would management be pushing the 1-4% mentioned?

I don't know. Maybe they're telling the truth ;)
It just seems to me that old-style food companies will have razor thin margins and they won't be able to give up a 1% royalty. The only way they could is if

a) the flavor enhancers substantially expanded their markets (very unlikely) and/or
b) the flavor enhancers substantially reduced production costs (i don't know enough about the business of food production to comment on this one)

This also reminds me a little bit of the genomics 'revolution' of the late 90's. You have a new fancy high-throughput screening process that will revolutionize the industry going up against the old-fashioned stuck-in-their-ways flavor chemists. Not to say that the genomics companies didn't shine for a while, but it pays to remember who won that fight.

Going back to the 2-4% royalty. I'd love to hear EXACTLY how they phrase this. I've seen business development people turn bulls*** and loop-hole threading into an art-form.