Poor negotiation skills9 Sep 2018 19:36
I've been invested here since 2009 and I agree with Thoth. I think Tim and Co are great scientists but not brilliant at financial negotiations. I was a little disappointed with the CHK1 deal we ended up with considering how great CHK1 was but when you look at the figures for our first deal I suppose it wasn't too bad.
If the compound is a great success and Sierra make $5 billion a year in net sales CRT will get a high single figure or low double digit Royalty (from Sept 17 RNS) which means we get 27.5% of that. So lets assume CRT manage to get 10% royalty they will get $500 million per annum and Sareum get $137.5 million per year. With 2,750 million shares in circulation at the current exchange rate we'll get 3.8p per share. That's not too shabby! And that's per annum.
Although I don't think the first deal was that great, I'm hoping that they have learned a lot and now have more confidence in negotiating a better deal. Fingers crossed.