After quite a few years (actually many years) of talk about "discussions" and "deals" and the like, we have recently witnessed (what I think are) some significant actions towards the objective of selling off one or both of the companies (or licensing groups of formulas):
1. Zenith was split into a operations company (that could easily be sold off in whole or part) and a capital company (that would be retained to collect royalties from RVX)
2. Formulas between the companies have been "finalized" (I think) as to who owns what.
3. And now the royalty arrangement between Zenith and RVX is being updated so as to effectuate the finalization of formula ownership/rights.
I think all of this is being done for the specific reason of monetizing both Zenith and RVX. They have invested significant time and money (legal fees, etc.) in bringing this about. They wouldn't be doing this unless they see a real possibility that monetization is around the corner.
I think they are doing it in such a way as to effectuate a deal arrangement or deal arrangements that are forthcoming.
I think it is coming close. We know about a licensing deal that has repeatedly been mentioned by management as coming this year (2016). As recently as a few weeks ago. There's no sign that that milestone won't be met.
It could be that the new royalty arrangement is necessary to have in place before the licensing deal is announced. That might be the case if a company like Novo Nordisk (for example) wanted to license Apabetalone and some additional follow-on formulas that may or may not raise APOa1 at the (soon to be) formerly required threshold. It might also be the case if they (or another pharma) wanted to buy the entire company.
None of us knows what is happening or not happening. But I think that if you put together the words of management plus their actions recently in re-arranging companies and formulas, there exists a reasonable probability that something is up.
Perhaps there is a Christmas present in store for us. One that might not be revealed until the royalty arrangement and other matters are resolved at the AGMs of each company on December 15th.
After all, Don will be doing a presentation after the AGMs that will be webcast. Maybe just maybe that "presentation" involves a "present" too.
Speculation of course. Apologies for that.
And no, this is not investment advice! Do your own due dilligence and then do it again.
SF
