With 2 BLN sales of O's sales WW AFFY is expected to receive $300 mln in Cash each year with ZERO to NIL expenditure.
The big hedge funds will accumulate the shares bigtime, since AFFY has a very small float of 37 MLN shares. MOMO plays indeed happen, but stay strong and focused. Once you give and the possibility of getting it back at the same price will eventually become NONE, soon.
When the stock traded btw 1.80-1.95 (45 MLN shares) the shares moved to very strong hands.
You will loose part of $1 if O don't return, on the other hand you will receive perpetual dividend payout as long as AFFY in the market place, when Takeda does it LEG WORK.
Stay strong, stay focused and look at the Ultimate prize. I'm expecting an immediate Target price of $25 for AFFY and each country launch the share will pop up bigtime.
It's ALL available (both the Milestone parameters and payout and the royalty structures) in the recent Amended Agreement between Takeda and Affymax. Only questions are:
1. Will Omontys return...YES !!! (imeo)
2. What will be the proforma revenue projections against the various payout parameters in the Amended Agreement.
3. What construct will be agreed to for how this will all be put back together. I'd personally prefer the Privately Held Royalty Trust option because it would yield the greatest long term returns. BUT I also believe that Takeda is most pre-disposed to a complete buyout and total control (with nobody to be beholden to in a Royalty Trust) of Omontys. This was all advanced by their recent joint $2.15 Billion legal victory with Pfizer (announced this week). AND...It's why they facilitated the operational and managerial shutdown of Affymax and are keeping the company alive under The Brenner Group as all the T's and C's with all relevant parties are being finalized. I am firm in my belief that there is a deal on the table that is actively being negotiated. As I said previously 426!!! But given how I have seen these things play out in the past maybe 628 worst case. BUT all the ducks are in line and the final touches being finished.