The value will be based, like others, on earnings per share with a minimum PE of 10.
So let say Xoma get 052 on the market in a few years for multiple indications and earns 140,000 million per year. A conservative PE of 10 would price the stock at roughly 10 bucks a share. If Xoma earnings were expected to raise in future years the PE could be higher.
Xoma potential earnings will depend not only on the drugs performance, but the deal(s)they are able to cut. One scenario might have Xoma out licensing non-domestic sales for several indications and co-marketing the domestic.
Another might be similar, but Xoma might reserve a smaller indication like junvile RA for themselves as it would require a smaller sales forces and target a small group very specific physicans thus making all the profit (if any) for themselves.
... :> http://finance.yahoo.com/news/UCB-focuses-on-new-product-iw-15079754.html
Following the receipt of a Complete Response Letter in January 2009, UCB recently submitted the additional safety update on Cimzia® in rheumatoid arthritis requested by the Food and Drug Administration (FDA).
Did we negotiate a royalty or license agreement with UCB that is very beneficial to us? In other words, if Cimzia were to be OK'd for rheumatoid arthritis, would this be absolutely huge for Xoma, or of lesser benefit?