RE: Good Morning everyone!19 May 2021 10:53
This question and answer from the March Q&A speaks absolute volumes -
Does the collaboration with PYC indicate that you value VAL201 in excess of £100 million as you
mention a 6% funding deal that is capped at £6 million.
Do you think this is a realistic valuation and would you think it’s achievable within the next 12 months
or so or is this £100 million + something that you would expect over a longer period I.e. a number of
years?
The agreement with Physiomics plc provides for ValiRx to pay up to 6% of net revenues for any income
related to the further development of the VAL201 peptide by a third party. The total payable is capped
at £6 million.
The intention of the cap is to limit the ongoing liability and is a reflection of the potential “value-add” of
the Physiomics technology. For sound commercial reasons, we cannot speculate on the value of VAL201, nor when it might be
realised.
A typical biotech deal consists of an upfront payment, milestone payments and a royalty/revenue share.
Depending on the nature and type of company involved, the quantum, frequency and bias between
these three factors will vary significantly.