Replies to post #5434 on GTC Biotherapeutics (fka GTCB)

[ThomasS]

I'll also go against convention and suggest that I am not 100% convinced that ATRYN USA is the partner. (98%)

Regardless, we may not see the partnership finalized before the Top-line data.
(Did anyone else notice that Dew sounded less like Ms. Blum and more like a 21 year old man? I thought he was much more advanced in age... although the merlot-based resveratrol may be working effectively to retard the aging process...)

[ThomasS]

It's the java, folks... sorry. Another permutation:
"If" a partner were able to breakout HD revs from AD revs,
GTC grants the partner 100% of HD revs in exchange for all AD funding (which includes more than DIC, folks) and a larger than normal royalty on future AD revenues. This, again, mitigates partner risk and garners GTC greater revenues in the long haul. Since GTC has other fires smoldering, they might be able to swing such an arrangement with less near-term revs in exchange for greater later.

"If not," GTC grants the partner 100% of ATRYN revs for the first 2 years and then grabs an inordinate share of the future revs.

The converse could also work: GTC gets all revs for ATRYN USA for 3 years (to fund other internal programs and be in a stronger future partnering position) and then gets a lesser than normal royalty on total ATRYN sales.

The possibilities are numerous and may not follow conventional thought. I'll cease boring you folks for today. Only...

[10nisman]

Partnership...

All speculation for now... However, I think one of the key financial pieces of the partnership will be the price of any equity interest sold to the new partner. I would HIGHLY encourage management to negotiate selling an equity interest at a significant premium (40-50%) to the market price (current $1).

The additional $4-$5 million that a partner would pay on a 10 million share purchase would provide GTC greater financial flexibility, while putting a higher floor to the stock price. It would also show to the street that Management and its partner not only believe in the Company and its prospects but that the current market price was complete inaccurate. IMO, selling the equity interest at a premium would be a win-win situation for everyone, GTC, shareholders, and the partner. I'd actually prefer if GTC received no or very little upfront cash, while selling an equity interest at a significant premium.

I hope that made some sense since its late, I mean very early in the morning. Any one have any thoughts?

10nis