Replies to post #388666 on Anavex Life Sciences Corp (AVXL)

[crescentmotor]

Partnering, mergers, and acquisitions come with many more considerations than just financing, control being a major one.

Yup--when a small biotech partners with BP, the small company gets up-front revenues that are usually desperately needed to continue growing in the company. In exchange, BP gets a huge chunk (usually more than 50%) of future revenues. BP comes out with a huge advantage.

In AVXL's case, a big consideration in partnership negotiations will be whether or not an additional large Phase 3 trial is needed and who will pay for it. In addition, if a further trial is needed, the partnership structure is going to be influenced by additional milestone features. The question is will Missling make a move before the regulatory situation is clarified. I think he should wait until some of the variables are understood. Things will be much clearer in a few months.

[tredenwater2]

Partnering, mergers, and acquisitions come with many more considerations than just financing, control being a major one.

Yup, look no further then the Alz Assoc. for an example of “control” and thus why we never opened sites in the US. I wouldnt put it past Dr. Missling to be negotiating a “minimalist” type of partnership for Alzheimer’s to protect the future drug trial “process” to not turn into a red tape stall. If your BP and your going to try and purchase a company in the future why would you help them accelerate valuation wise into a small behemoth of a pharma. Instead you would snuggle up to them ( keep your friends close and your enemies even closer) and put a wet blanket on their pipeline until you can force them into a final buyout offer. The only time this wasnt the case that I can remember was Roche’ s purchase for Genentech for some 45 Billion and I believe that was for the other 51% they did not already own. Make no mistake, Dr. Missling is implementing a huge accelerated rare disease program parallel with bring Alzheimer’s to market. With Rett Syndrome and soon Fragile X in the wings this may put us in a very sweet MC spot.