Bill, Harry, Rick, and all,
Nothing has changed regarding dermagraft domestic sales rights, as the 50-50 deal has been in place for this all along, and the recent deal only excluded the usa for dermaraft TC, leaving this as ATIS only.With this 50% partnership come 50% expenses, but a far better share of the revenues than with most companies, partially explaining the logic behind partnering with one major company only. There have been a few changes though, as for every 50 million in sales 5 million will now be given to atis, vs. previous 10 million for every 100 million, so less has to be earned to get the extra cash infusions, although with no loss if the earnings were to stockpile.
The share price for ATIS purchse by S&n is said to be 13.05, the avg. of the previous nine trading days prior to the announcement, with the 20 million picking up @ 1.5 million newly created shares(wish this hadn't happened, as no new shares really were needed, but it is far from a seconday offering, also. S&N will also give 15 million in cash by 1/4/99
Also, it appears that more countries now have dermagraft available...Sweden and Ireland in addition to canada, uk, and finland..
Looks like the stock is trying to rally, and yet has the foot on the brakes,a phrase which works so metaphorically well(thanks Harry). I think they will ultimately be fine, but it will be interesting to see if any real momentum is yet to be gained prior to the meeting. People don't figure that it will penetrate the market all that rapidly, which may be true. However, getting medicare reimbursement coverage would help a lot, as most with diabetes and foot ulcers are older, and as such would get funding, and this would also bring in another milestone payment. The long term looks bright though, and I don't think S&N is out of touch enough to totally bet the farm on a company they didn't think had pretty excellent products and profit potential. Also, getting new indications in an expedient way would also help the revenues tremendously.
There are other new milestone payment descriptions, but it is getting late and I'm tired. If anyone would like further description of the milestone payments available, please let me know.
regards to all, and have a nice weekend,
Marshall |
