Development funds have typically come from the special reserve fund which would not be affected by the Obama sequestration.
The PAHPA re-authorization bill HR 307 is to continue funding after 9/30/13 - the end of the federal fiscal year. The award we are awaiting is funded in the current PAHPA bill.
The Obama sequestration technically should not affect this - since it is already funded.
But it can't be good in the long run when your funding source and top customer is broke. Hence the PPS.
But I think once this does come in, the ramp to commercialization is clear(er). Then the oncology indications can mature without the cash flow concerns. So you would think that the BARDA award will change the valuation calculation quite a bit.
I believe if PAHPA passes the Senate and is signed into law BARDA funding will be stabilized for the next five years. If you have missed earlier posts this legislation has passed the House by a wide margin, has been approved with bypartisan support by the Senate committee on Health, Education, Labor and Pensions and is on the calendar for a full Senate vote. It sounds like a slam dunk but who knows with Washington.