potential6 Mar 2006 20:47
VEC market cap £100m. Genuinely achievable potential for initial licence payments from Novartis £100m with additional royalties on product NVA237 alone. This is a real product with a real market. Other products are as significant. Pity the interim results (November 2005) did not give more information about the terms of the agreement with Novartis. Eg what are the milestones to be reached. Dates would have been nice.
If NVA237 alone is as good as it seems, then it would make much more sense for Novartis to bid for VEC. Let's face it at the market cap, it's about what they are willing to pay anyway.
Speaking from experience of the principles of NVA237, I remember when a tablet drug called ephidrine had the same effect, before it was deemed to be on the risky side. Pity for asthma sufferers who got relief. Drugs administered by inhaler are much much more effective using only a small amount of the drug and may offer similar or better results.
At this market cap, with these products, I cannot see VEC being left alone for long. This is certainly in Pfizer territory, for one.