I just got off the phone with Paul Burrougs. The only reasons why share price of AEZS is lower than KERX are because AEZS have been doing ATM and it does not have as many institution investors as KERX. HOWEVER, AEZS's fundamentals are a lot stronger than KERX. 1) Perifosine's North America market is only 40% of world market. 2) AEZS does not need to carry out any Perifosine trial in Europe if the drug is approved by the FDA here in the United States. 3) KERX will have to sell Perifosine license to another company since it will be too costly to commercialize this drug.
So from the fundamentals you can see that AEZS will bring in more revenue than KERX if Perifosine is approved by the FDA.
Currently there is only about a 20M$ difference in market caps;not really much to speak of in the big picture.A few weeks ago they were about even for a few days.The gap has narrowed dramatically over the past year or so.
Lets say if the percentage is 30%, and the sale is $1 billion, then Aeterna will get $300 million. Which is a very large sum of revenue. Plus Aeterna save a huge amount of money that KERX will spend to manufacture, comercialize and market Perifone.
another factor to consider is that drug prices and profit margins are much higher in US, multiples higher in most cases. I prefer the safety aeze pipeline but believe that if perifosine OS materially exceeds 2 month benefit over SOC then kerx PPS response will be larger, initially at least due to large short position.