Replies to post #138257 on Bioelectronics Corp (BIEL)

[China Cat Sunflower]

DB
I know, you are completely right. I checked mid cap med device cos market value and not many make money at all. I am assuming the worse but profits are king.

[misanthrope]

If BIEL sells zero product, the company goes bankrupt - and some entity buys the patents for a song. Company pays the debt, buys the patents, AND it also gets the mattress full of (at that point) worthless shares!

That bumps shareholders calling the IRS off the top of the crazy pile......

[Rheeper]

That's sadly incorrect. BIEL wrote off or amortized its IP a long time ago (IP and patents are captured in intangible assets). I confirmed this with Andy.

That said, I agree BIEL's IP is very attractive to a multi-national corporate with strong distribution channels, especially if they get FDA approval for actipatch to treat migraines. NYTimes reported that the FDA approved Amgen and Novartis's new migraine drug but the list price will be $6,900 a year.

This is apples to oranges, but Endonovo acquired RGN's PEMF assets for a measly $4.5m. RGN's PEMF assets are not OTC and are limited in scope. Also it looks like RGN had no leverage in negotiations because they were being sued.

Then again, BAYER paid about $14bn for Merck's consumer division back in 2014, and Dr. Scholl's alone was valued at $1bn.

So conclusion, while I agree BIEL is worth multiples of its current valuation, I think a near-term (1-2) takeout valuation would be $500m-$1bn. Down the road, when sales explode then I think you can justify a higher valuation.