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GUD.V - Knight Therapeutics


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I don't think it is reasonable to expect Mr. Goodman to be the same as before

 

I don’t know… Surely, he won’t be the same person anymore… But in business you don’t need a very high IQ, nor a prodigious memory, nor flashes of dazzling brilliance, right?

 

Instead, you need emotional stability, you need the ability to think and to plan for the long term, therefore you need patience, you need to be flexible, to not be sleeping at the wheel and to constantly adjust to how circumstances evolve. And, of course, you need to have a very well thought out plan and to be in the right industry!... I am not sure how those things could be affected by an accident, even a terrible accident like the one Mr. Cooperman has suffered…

 

You also need a certain dose of humility… And I would say surviving a serious accident might even improve some people on this topic: to touch first-hand the precariousness of life might serve as a constant reminder of how much prudence is always warranted in everything that we attempt doing.

 

So, maybe (just maybe!) Mr. Goodman has lost some abilities, while also gaining others… :)

 

Gio

 

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From the March 2015 Presentation:

 

$417 million in cash and equivalents and marketable securities.

+

Impavido: $500k expected revenue, at a multiple of 5x it would be worth $2.5 million.

+

PHOTOFRIN: Upfront payments include $32.7 million cash consideration and $5M of CHI’s common shares. Total: $37.7 million.

+

ATryn: I don’t know how to put a value on this one, therefore let’s say it is a zero.

+

NeurAxon: $1.75 million.

+

CRH Medical: USD $30 million (a loan that bears interest at 10%).

+

Apicore: USD $6.5 million (a loan that bears interest at 12%).

+

Synergy Strips: USD $6 million (a loan that bears interest at 15%).

+

Origin Biomed Inc.: $0.85 million (a loan that bears interest at 15%).

 

TOTAL ASSETS: $502.3 million.

 

Debt is zero, I think… At least it was not even mentioned in the presentation.

 

MARKET CAP: $772 million.

 

If my valuation is right, GUD today is selling for 1.54 x NAV. With lots of dry powder to use should the right opportunity come their way. And a proven management.

 

Am I missing something?

 

Thank you,

 

Gio

 

Thanks Gio for the list, you could also add some $ for CRH warrants. So about the Pediapharm deal it was a small one. The + $ 400 M question now is what is the return than a guy like Goodman will generate. Based on Paladin lab story (+ 19 years)... A + 20 % / year is possible on part of it. Time will tell.

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From the March 2015 Presentation:

 

$417 million in cash and equivalents and marketable securities.

+

Impavido: $500k expected revenue, at a multiple of 5x it would be worth $2.5 million.

+

PHOTOFRIN: Upfront payments include $32.7 million cash consideration and $5M of CHI’s common shares. Total: $37.7 million.

+

ATryn: I don’t know how to put a value on this one, therefore let’s say it is a zero.

+

NeurAxon: $1.75 million.

+

CRH Medical: USD $30 million (a loan that bears interest at 10%).

+

Apicore: USD $6.5 million (a loan that bears interest at 12%).

+

Synergy Strips: USD $6 million (a loan that bears interest at 15%).

+

Origin Biomed Inc.: $0.85 million (a loan that bears interest at 15%).

 

TOTAL ASSETS: $502.3 million.

 

Debt is zero, I think… At least it was not even mentioned in the presentation.

 

MARKET CAP: $772 million.

 

If my valuation is right, GUD today is selling for 1.54 x NAV. With lots of dry powder to use should the right opportunity come their way. And a proven management.

 

Am I missing something?

 

Thank you,

 

Gio

 

Thanks Gio for the list, you could also add some $ for CRH warrants. So about the Pediapharm deal it was a small one. The + $ 400 M question now is what is the return than a guy like Goodman will generate. Based on Paladin lab story (+ 19 years)... A + 20 % / year is possible on part of it. Time will tell.

 

Gio,

 

Why did you exclude the investments in various venture capital funds in your book value calculation? The cost was over $110 million. If you include these, the p/b is less than 1 with recent price drop.

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New partnership announced

 

http://finance.yahoo.com/news/gud-medison-taken-knight-210000342.html

 

Of significant interest:

 

To solidify the partnership, upon the closing of the transaction, each company will become a significant shareholder of the other. Specifically, Knight will hold a 28.3-per-cent equity interest in Medison valued at $80-million ($60-million (U.S.)) in exchange for approximately a 10-per-cent equity interest in Knight (10.33 million common shares of Knight to be held by Medison and its controlling shareholder).

 

So does this mean Knight is valued at $800M CAD based on this transaction ?

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Good news. Should help to pay the rent.

 

November 2, 2015 – Knight Therapeutics Inc. (TSX: GUD), through one of its wholly-owned subsidiaries (“Knight”), announced today that a dividend to Knight in the amount of NIS 5.66 million [C$1.9 million] has been approved by the Board of Directors of Medison (1995) Ltd. (“Medison”) The dividend relates to Knight’s 28.3% equity interest in Medison. Historically, Medison has declared dividends on a semi-annual basis.

 

“We are pleased with our strategic collaboration with Medison. We hope to report both financial and strategic dividends from this partnership for years to come,” said Jonathan Ross Goodman, Director of Knight.

 

 

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I was actually a bit surprised by this news ! I wasn't expecting them to receive dividends -  it wasn't in the News Release when they invested in Medison.

 

Hopefully will help shareholders pay the rent in the future.... :))

 

So about the rent for shareholders...you probably know I have hight expectations also to get good return from AKR.v :) but If we want to dream about what could become GUD over long term we can read another annual report :

 

http://www.paladinlabs.com/pdf_files/PaladinAR_2012En.pdf

 

PS we should change the gud.v, the company is now listed on TSE.

 

 

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Goodman is one of my favorite 'outsider' CEO's out there now.  Bought some after the Paladin sale when it was trading at less than the value of the PRV, with a free option on Goodman's capital allocation.

 

Excited to watch him compound this name over the next few years

 

Todd, maybe some discussions soon with Endo about Paladin, maybe not.

 

"We are continuing our product-by-product portfolio assessment and the development of our full corporate strategy, which we plan to discuss in greater detail when we provide our fourth quarter and full-year 2016 results in February, 2017," added Mr. Campanelli.

 

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aENDP-2429210&symbol=ENDP&region=C

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The company said in the CCall it is a $ 3-5 M sales potential at peak.

 

2016-12-15 08:15 ET - News Release

 

Mr. Jeffrey Kadanoff reports

 

KNIGHT THERAPEUTICS ANNOUNCES EXCLUSIVE LICENSE AGREEMENT WITH ASTRAZENECA FOR MOVANTIK/MOVENTIG IN CANADA AND ISRAEL

 

Knight Therapeutics Inc. has signed an exclusive licence agreement with AstraZeneca for the rights to Movantik (naloxegol) in Canada and Israel. The financial terms of the agreement were not disclosed.

 

Movantik, the first once-daily oral peripherally acting mu-opioid receptor antagonist (PAMORA) approved in Canada for the treatment of opioid-induced constipation (OIC) in adult patients with non-cancer pain who have had an inadequate response to laxative(s), was launched by AstraZeneca in October, 2015. Movantik is currently under regulatory review in Israel and, when approved, will be marketed under the name Moventig.

 

According to the Canadian family physician practice guideline, it is estimated that at least 26 per cent of chronic opioid users suffer from OIC.

 

Based on QuintilesIMS, Movantik sales in Canada were $372,000 for the 10-month period ending October, 2016.

 

Under the terms of the exclusive licence agreement, Knight will be responsible for all commercial, regulatory and certain supply chain activities for Movantik in Canada and Israel.

 

"We are pleased to partner with AstraZeneca and to continue their efforts at introducing Movantik to patients in Canada and Israel," said Jonathan Ross Goodman, chief executive officer of Knight. "Movantik is a unique product that addresses a clear unmet need and will be a great addition to our portfolio of products that treat conditions associated with the use of opioids, such as Probuphine."

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