Biotech Values

[acgood]

Why would a buyout of BPAX adversely affect the LibiGel economics for AIS?

If BPAX get $100m (or whatever) upfront for Libigel US partnership, $25m would flow immediately to AIS, plus 25% of any milestones and a small royalty stream. AIS also would receive an undisclosed percentage of the premium of any accompanying stock sale to a partner (analagous the OGXI-ISIS-TEVA situation)

If BPAX is bought out for $500m (or whatever), NONE of this premium/money goes to AIS. They would get their royalty stream and would still own the ROW rights, but would lose out on cash such as described above. (This assumes that the company that buys BPAX does not sub-license the US rights after purchase...)