Bargining power28 Aug 2020 10:46
@ruckrover - "Or a possible take over target lol!"
@crumbs - "An interesting aside about the capital raise... number one on the list of Proposed Uses Of Proceeds is 'Strengthen balance sheet to support potential partner discussions for pipeline programs'
From that I take it not as there may be potential partner discussions across the pipelines but that there are discussions with potential partners...."
@emptyend -
"...Worth noting he was also asked if they were a potential bid target. He didn't opine on that, but he did suggest that they had such potential for organic growth that they could become huge themselves.....
....some may think that is exaggerating - but I don't.
And, in that context, there is very great relevance in the structure of the recent raise because, by adding in a well-connected industry specialist fund, they now have a small group of shareholders with a potential blocking stake - which would probably have the capacity to thwart any opportunistic bidder trying to pick the company up early and cheaply....
.....I rather hope that Redmile are quite greedy about their expectations here ??"
So a few takeaways,
1) Scancell (and importantly their big backers) saying and believing they could become as big as the likes of BionTech in their own right
2) Fully funded for two years (with Redmile importantly being one of the backers)
3) As @raypointer err... pointed out, potentially "we could have 3 trials going by H1 2021."
Basically Scancell arein the best negotioting position they could possibly be in with regards to a takeover. Whilst i wished they were bought for a billion 6-7 years ago, they have IMO never been in such a strong position.
All IMO, but by saying "actually, we could do this all ourselves anyway" plus points 2 & 3, any takeover would have to be huge in value i.e. billion(s) to appease both Scancell, Redmile and Vulpes (basically emptyends point i think)
In fact part of me thinks getting to the position they have, and the rhetoric that they could go alone could simply be a barganing chip, adding X 100's millions to a deal price? Is this all about getting the negotiating power rather than actually wanting to go it alone.
P.s. Surely Biontech, with all it's exisiting connections to Scancell are the ones circling like vultures?
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