Biotech Values

[AlohaDan]

The contracts that SNMX has forged are for niche rather than mainstream products, where the food companies’ margins may be considerably higher. The bad side of this, of course, is that the sales base on which royalties are calculated will be small.

Frozen soups they mentioned would seem to fit the above.

Coffee as with the recent Nestle agreement, OTHO would be mainstream. As would an additional application of the frozen soup additive (MSG replacement/reduction). The company made a point that they retained rights to product use in other apps. So while frozen soups would be niche, MSG subsitute would be broad.

I've e-mailed some industrial rag editors on this royalty range figure. If you find something like "Food additives Today" I'd suggest others try to elcit an opinion also.

BTW from the below site the industry seems quite large ~$8 billion US alone and growing.

http://www.leffingwell.com/top_10.htm

There seems to be room for a new competitor if GRAS acceptance is granted. That might be a buy in decison point as it seems to me to be the largest potential negative.

Anyway as I first asked, keep throwing your negs out there. If I can't trump you/put it lower than my own list , then I know there may be a major problem I've overlooked.