RE: Possible covid 19 pill1 Aug 2021 11:19
Morning HBD. apologies for a little late getting back to you.
Sar have not ever had a surplus of money.
Sar for years had a market cap of 10 to 30 million. Money was raised by large share dilutions.
To a large pharma irrespective of type of drug they have a pharma will display a little more than a passing interest. Yes, they may will be in discussions. But as Sar are a very small company, with a very small market cap, companies will only pick it up for next to nothing. They to an extent control the deal. He who has the big bucks dictates. You can be sure of that.
Recently, with our endeavours with regards to 1801 and covid in particular and a novel form of investment from high net worth individuals the market cap is now over 250 million.
A large pharma could pursue his point of no guarantee that any of the compounds will work. Yes, the compounds are new, novel even.
Bare in mind that we have raised circa 3.5 million and should we raise another 1.5 million , we have then demonstrated the ability to raise 5m which then opens the door to a further 30 million.
With this money Sareum ( subject to successful trial) could take their SDC 1801 molecule just for the purpose of Covid 19. Up front contracts with our government within a 12 month period you would expect to exceed 500 million income and most likely, more should 1801 be used for more than just down regulate the cytokine storm.
This is Covid 19 0nly and no other indication for our 1801 imunotherapy. We are now a company with an income, and kudos of not only having the best, but also the least toxic treatment for covid on planet Earth at this time.
Our market cap at least now at this point I would estimate at 4 billion. A very modest and I will say pessimistic approach based on 8 times annual turnover. Note this does not take into effect demand for compound outside the UK. The turnover will have a substantial increase on 500 million a year as will the market cap.
The point I make, apologies for being long winded. Sareum can now sit at the negotiating table completely in charge. Sareum now have options, having these options, has phenomenally increased not only their status, but also their negotiating power. Effectively, it will place Sar in the driving seat. For a total buyout at this stage, I would say the 13 billion recent deal would pale into insignificance.
The time period for this stage I would guess would be after stage 1 and 2 trials with fast track into treatment. 100 days, 7 to 14 days announcement of Agile. a further 60 day period for government contracts to be drawn up and filled. 167 to 174 days
5 and a half to 6 months to be in the driving seat with significant market increase when certain hurdles have been overcome and continuing success of compound.
These are just my thoughts on this. Oddly it does tie in with regards to timeframe of a takeover postulated likely to happen by other long term holders here.
Regards