George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Voted for the resoltions today. Not a particularly big holding - about 11k worth - though gave applied for oo abd significant exceds
It certainly will be fascinating to hear how Lindy intends to provide more evidence for Avidimab's worth as an ADC.
Its been posted here before, so just a reminder
https://www.astrazeneca.com/media-centre/press-releases/2020/astrazeneca-and-daiichi-sankyo-enter-collaboration-to-develop-and-commercialise-new-antibody-drug-conjugate.html
"AstraZeneca will pay Daiichi Sankyo an upfront payment of $1bn in staged payments: $350m is due upon completion, with $325m after 12 months and $325m after 24 months from the effective date of the agreement.
AstraZeneca will pay additional conditional amounts of up to $1bn for the successful achievement of regulatory approvals and up to $4bn for sales-related milestones."
Wow!
Agreed Douve and don’t forget even without extra Redmile funding SCLP have a healthy balance sheet.
Plus the other party in the mAB deal would have been dealing with SCLP before the initial raise.
Think disagreement between Vulpes and Redmile disproves that thecRedmile investment was planned from the start.
https://www.lse.co.uk/rns/SCLP/proposed-investment-by-redmile-and-open-offer-3q623fszzcs2uo2.html
"Build on existing antibody expertise to further advance the preclinical development of the TaG antibodies, including as antibody-drug conjugates ("ADC")"
I reckon this extra work on mabs/avibimab is aimed at getting a much better deal. The urgency is removed to close a deal at any price.
I cant understand why any commercial deal would depend on us securing additional funding from redmile? I appreciate government grants do but that does make sense as they don't want to give funds to a company to do research who then go into administration or use the funds to stay afloat. But a government grant and a commercial deal are different things. I have never heard of any company licensing another company's ip/tech/product but insisting they have a stronger balance sheet? So don't think that seems likely. Like I've said previously I'm keen for us to complete a commercial deal but will be annoyed if we now complete one before Xmas as otherwise this financing was raised at the wrong time and dilluted more than it should have been.
Unless the deal is conditional on Scancell having the Redmile funding in place and maybe come about as a consequence of Redmile's associates in the pharma industry? Redmile have far more and bigger associations in the field than Vulpes do.
The only thing that makes me think this wasn't the original plan is that when they did their first investment at 5.5p the bod's stated aims was to complete the first commercial deal within 2 months. Now that hasn't happened (still yet to be impressed by the bod's business nouse) redmile have come in again.
As I have said previously if a deal was done then surely this deal wouldnt have been necessary so I suspect redmiles decision to invest may have been less planned than you think and commercial deals are in the long grass again.
And also you would have thought that Scancell would also have done due diligence on redmile very much on the same lines as Bermuda did.
I suspect Vulpes are just sorry they couldn't get as many shares as they wanted at single digit prices.
That is not a bad hypothesis...
Possibly too it is as simple as they wanted in and asked Lindy how much money do you really need to get as much data in during the next 2 years... to which she gave figure and they said it is yours and then they came up with how to best bring those funds in...
Here is my hypothesis on the Redmile investments.
When Redmile made their first investment I believe they already fully understood the potential of Scancell’s products. They are a top class biotech investor and I don’t think they invested in a tiny UK biotech without first doing their research.
I also believe that they had 2 clear objectives from the beginning:-
1. Take a big stake in Scancell in order to get a large return.
2. In doing so, provide Scancell with sufficient financial firepower to progress their products rapidly so that this return comes as quickly as possible.
So, if this was their objective what did they not simply invest £40m back in August ?
I think the answer to this is that to raise £40m at 5.5p Scancell would have had to issue 727m shares. Given that there were only 465m shares in issue at the time this would have meant that Redmile would be getting 60% of the company for £40m. Not withstanding the take-over implications, I’m sure that all major shareholders and many PI’s would have voted against such a cheap give-away of most of Scancell.
So, I believe that Redmile are making their investment in a series of tranches where they build up an increasing stake at prices that are acceptable to the shareholders (i.e. will be approved at the related GM’s). They will of course always try go get the largest stake they can get voted through at the lowest cost - maybe the parties voting against think the current fundraise amount of £30m priced at 13p gives Redmile too big a stake for too little cost ?
It may be that this investment will be Redmile’s last tranche, or they may be back for more in the future at a higher price - I suspect the former because if the motion is approved at the GM Scancell will have enough cash to get solid data on several products and, if the data is good, will be able to strike deals or will get bought out for (IMO) significantly more than 1 billion.
I voted for the motion btw.