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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?


To: Gurupup who wrote (3860)7/1/1998 7:02:00 PM
From: Ron Harvey  Read Replies (1) | Respond to of 5736
 
<<Try to figure out the risk reward from current levels. Maybe $ 1/2 down, and maybe $4-5 up.>>

This is what I've been wrestling with to try to determine whether CCSI is worth another bet or not before a distribution partnership is announced. Even if you don't go along with what I'm going to posit, respond to it as a hypothetical instance. Suppose, as I expect, the deal provides Chromatics with a not uncommon 8% licensing fee (the CEO reluctantly settling for this after conceding she's not going to get the generous arrangement she'd been hoping for). Maybe even as high as 10%, although that could be iffy. Under these (hypothetical) circumstances, what might be the financial implications to the company for the first year out should the medical-device product receive acceptance by pediatricians and hospitals? Conservative estimates, of course.