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RockoTaco

09/24/18 12:16 PM

#77667 RE: Honeycomb777 #77665

You are right, if Titan will hold off selling and get this to FDA, Titan will sell in the Billions.
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QuidWilson

09/24/18 12:34 PM

#77670 RE: Honeycomb777 #77665

It's not so much the price as the internal rate of return. Since any asset should yield a profit, it's the best use of capital that is of concern to firms. A lot of buyers could justify a $1b purchase if the yield is favorable. The opportunity cost of a high risk $25m purchase is great. They could use that same money for cash flow positive assets. Current state it's a guaranteed negative return with no guarantee that will turn around anytime soon. To encapsulate: in general firms care about rate of return, not necessarily price of asset.