AI
Thursday, May 26, 2011 8:42:59 AM
1. it eliminates the need for dilutive financing
- near term, yes, long term 1.5 yr+, perhaps not (only cause of development for rigs and possible acquisition(s))
2. it monetizes an asset that I didn't know NEOP had, and that I did not care about, and which I doubt anyone playing NEOP attached any value to.
- it was their only revenue, so yes they did value this but felt it more important to pursue lymphoseek and develop rigs
3. they got a good price - someone else posted (on YMB?) that this was 3 years worth of revenue from a sector that had been declining
- they got a great price for it and they were averaging 9M annually, so the 30M cash + up to 20M more later is a great price
4. with cash in hand NEOP can develop their drug once approved
- they can pursue a wider range of usage (other then breast cancer, melanoma, head and neck cancer) with lymphoseek through clinical trials while concurrently develop RIGS (1.5B+ sleeper)
5. although NEOP still could partner, or ultimately agree to a buyout, the cash allows them to deal from strength and get a better deal if they choose to deal
- they already have the best partner in the radio pharmaceutical area with cardinal health. albeit, it won't suprise me if cardinal just flat out buys them out
6. NEOP is now a pure drug play and should be awarded higher multiples accordingly
- yup
7. It strongly signals that management is confident of approval
- absolutely
8. as a pure play, NEOP now becomes a cleaner company to buy if a big pharma company wanted to do so
- yup, concentrating your business into 1 particular sector makes you more attractive
Additional Notes: They now have cash to advance RIGScan, which at one point in time took their pps from 1.50 all the way to the mid to upper 19's before the fda denied the application. Several years later, they found that the patients who used rigscan during the trials had a correlation with overall survivability. As shown in the graph below.
Lymphoseek has not been priced yet, so the estimates of the market cap that you see floating around are not accurate. I suspect that because Lymphoseek is a superior product and will be insurance reimbursable, you will see a higher price tag then the mkt cap of 450M you see floating around. Add RIGScan to this picture and this company can easily have a 2-3B mkt cap 1 to 1.5 years from now.
- near term, yes, long term 1.5 yr+, perhaps not (only cause of development for rigs and possible acquisition(s))
2. it monetizes an asset that I didn't know NEOP had, and that I did not care about, and which I doubt anyone playing NEOP attached any value to.
- it was their only revenue, so yes they did value this but felt it more important to pursue lymphoseek and develop rigs
3. they got a good price - someone else posted (on YMB?) that this was 3 years worth of revenue from a sector that had been declining
- they got a great price for it and they were averaging 9M annually, so the 30M cash + up to 20M more later is a great price
4. with cash in hand NEOP can develop their drug once approved
- they can pursue a wider range of usage (other then breast cancer, melanoma, head and neck cancer) with lymphoseek through clinical trials while concurrently develop RIGS (1.5B+ sleeper)
5. although NEOP still could partner, or ultimately agree to a buyout, the cash allows them to deal from strength and get a better deal if they choose to deal
- they already have the best partner in the radio pharmaceutical area with cardinal health. albeit, it won't suprise me if cardinal just flat out buys them out
6. NEOP is now a pure drug play and should be awarded higher multiples accordingly
- yup
7. It strongly signals that management is confident of approval
- absolutely
8. as a pure play, NEOP now becomes a cleaner company to buy if a big pharma company wanted to do so
- yup, concentrating your business into 1 particular sector makes you more attractive
Additional Notes: They now have cash to advance RIGScan, which at one point in time took their pps from 1.50 all the way to the mid to upper 19's before the fda denied the application. Several years later, they found that the patients who used rigscan during the trials had a correlation with overall survivability. As shown in the graph below.
Lymphoseek has not been priced yet, so the estimates of the market cap that you see floating around are not accurate. I suspect that because Lymphoseek is a superior product and will be insurance reimbursable, you will see a higher price tag then the mkt cap of 450M you see floating around. Add RIGScan to this picture and this company can easily have a 2-3B mkt cap 1 to 1.5 years from now.
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