Member Info for JBond007

I disagree Cereus. If you're truly a brilliant pioneer, inventor and entrepreneur you would not want to work for a large company. If you work for a large organization you quickly become 'just another minion in a huge organization. I think we are hoping Tim and his crew are great at what they do and passionate about it. They have achieved amazing things already for such a tiny company and have proved that the SKIL platform works pretty well. I think Sareum is a very different company to VAL.

I personally don't think Utahsaints is the voice of reason and common sense! Have you read some of Utahs previous posts! He also promised not to post on here until the end of October so he or she is not a person of their word either.

My point is that if you were a multi billion pound pharmaceutical company like Roche for example you could buy Sierra Oncology and Sareum and get yourself possibly the best 2 cancer drugs in the world (CHK1 and TYK2) for a really great price. Sierra only has a Market Cap of £93 million. So for an outlay of say £3 billion (£2 billion for Sierra Oncology and £1 billion for Sareum) you could potentially secure a future income of over £20 billion per year. That makes perfect business sense.

The big pharma may want to get their hands on the 2 best cancer drugs out there, CHK1 and TYK2 in one hit.

Yes, I agree. I'm hoping they have £500 million to £1.5 billion deep pockets to buy Sareum alone.
Fingers crossed.

Hi all,

What do people think of the possibility of a big Pharma buying out Sierra Oncology and Sareum at the same time? Surely it has to be a possibility with the positive results coming back from CHK1.

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.