Replies to post #33413 on Biotech Values

[DewDiligence]

>Somehow I think CYTR would have went up less then it did if they just received a $24 million grant with no royalty<

No doubt! That’s why I consider this transaction disingenuous. The foundation says, “Here’s $24M to spend as you like.”

And CYTR says, “Thank you very much—as a token of our gratitude we would like to give you 1% of the royalty stream should this drug ever make it to market. Please accept our offer!”

As previously noted, CYTR was investigated for serious wrongdoing by the Commonwealth of Massachusetts, although they ended up being cleared. I would not be surprised if this latest transaction receives some sort of scrutiny from a state AG or even the IRS.