Masila's post from last January regarding the Zenith AGM had the following passage in it, which is located in a re-print of the post by Fundamentals6 on the I.V. board. I think it is quite interesting, given the postponement (for lack of a better term) of this year's AGM:
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Q: How do you see deals being done? M&A or Joint ventures?
A: Both. The advantage we have is that we were quiet for so long about what we were and where we were going. We’re able to come in with a 3rd generation drug. We understand a lot more than other companies. It enables us to start some serious discussions. Everyone is waiting to see the results with human data. We’re very confident.
Q: How would Royalty deals with other areas/companies be done in the new org structure?
A: Likely by end of month, there will be an official transaction date. ZCC will hold the royalty streams from both RVX and ZEL. ZEL will be the development company. It will be doing this on its own, in partnership with others or may even be bought out by some pharma. Same with RVX. (By the way, RVX is back in lab working on new drugs – very successfully.)
Hypothetically, if in the future, Zenith were approached by a pharma who said “we want everything” including the royalty stream, they just write two cheques. It’s a number that can be calculated and agreed upon. The structure also allows us to avoid dilution of the royalty stream as new investors would only have entitlement to ZEL in the future. As we go into more and more programs, there will be the potential to having to raise money. Why give away something (royalty stream) when we don’t need to?
LINK: http://www.investorvillage.com/smbd.asp?mb=10603&mn=26248&pt=msg&mid=16417048
