Re: $10B market potential for Lymphoseek - excluding Macrophage Therapeutics
My takeaways:
RG is getting better at these presentations. No commitment to revenue projections other than in line with the $10-12 M previously stated. He did mention that 'access to surgeons' has been easier than originally thought. I assume that Q3 will be marginally better with acceleration in Q4 & Q1/2016.
The questioner asked about the Cardinal deal; we now know this is a weak deal for Navidea. CAH recognizes the gross revenue and Navidea receives @ 50%. The pay increases were executed by RG, yet CAH benefits equally. NAVB pays for the sales force and related expenses yet CAH receives all the revenue and again distributes 50% to NAVB. Two of our Board members worked for CAH when this deal was negotiated. Kudos to them for negotiating a favorable deal for their employer at the time!
The original deal between Navidea and Cardinal Health expires @ 3/18. These arrangements are usually re-negotiated 18 months prior to their expiration. My assumption is that CAH wants to continue the relationship BUT the terms need to be altered so that NAVB receives a much greater percentage. This is a RG specialty so I am optimistic.
The Company has to better explain the pathway towards approval in cardiovascular and RA. Are we looking at 12 months or 5 years until commercialization? It is a much bigger bogey. If there are high chances for approval this should become a priority. Also, RG has to do a better job with the MT explanation (these presentations are short and he doesn't have adequate time to do this). MG & Mike McGrath strongly believe that this opportunity is huge. The Company needs to keep us abreast of LS Europe..it is a 2016/2017 event but investors need to understand what the opportunity is and have a time frame.
I hope to see Israeli index funds buying in NAVB which should drive up our share price (this should happen during the next several trading days).