Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
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Had a bit of fun with ChatGPT:-
ChatGPT
Estimating the potential value of Rua Life Sciences selling the rights to use Elast-Eon™ to a major heart valve company involves analyzing several factors, including comparative sales, market size, and the strategic importance of the material. Below is an overview of what Rua might expect, based on similar deals in the medical devices sector:
1. Comparative Sales and Licensing Deals
Recent Comparable Transactions in Medical Devices:
Gore’s Acquisition of Tactus Technology (2021):
Value: Estimated at around $300 million.
Context: Tactus developed a tactile feedback technology relevant to medical and consumer devices.
Implication: Significant value for proprietary technology applicable across multiple domains.
Medtronic’s Acquisition of HeartWare International (2016):
Value: Approximately $1.1 billion.
Context: HeartWare developed a heart pump technology, relevant to Medtronic's cardiovascular portfolio.
Implication: High valuation for a company with specialized heart technology, indicating premium value for strategic cardiovascular innovations.
Edwards Lifesciences’ Acquisition of CardiAQ Valve Technologies (2015):
Value: $350 million upfront, with additional milestone payments.
Context: CardiAQ developed transcatheter mitral valve replacement (TMVR) technology.
Implication: Illustrates substantial upfront payments and additional future incentives for promising cardiovascular technologies.
Licensing and Royalty Agreements:
Johnson & Johnson’s Licensing Agreement with Genmab (2017):
Value: Upfront payment of $50 million, potential for up to $1.5 billion in milestones.
Context: Rights to use Genmab’s proprietary technology in biopharmaceutical applications.
Implication: Significant potential earnings from initial licensing fees and milestones, applicable in a highly specialized medical field.
Boston Scientific’s Agreement with Baylis Medical (2016):
Value: Upfront payment and milestone-based payments totaling approximately $175 million.
Context: Licensing of proprietary technology for structural heart applications.
Implication: High value for technology enhancing existing product lines in the structural heart market.
2. Valuation Factors
**1. Market Size and Growth:
The global heart valve devices market was valued at approximately $8.4 billion in 2023 and is projected to reach around $12.1 billion by 2028, growing at a CAGR of 7.4% .
**2. Strategic Fit:
Elast-Eon™ has unique properties that enhance durability and biocompatibility, crucial for heart valve devices. A strategic buyer may place a high value on the ability to integrate this polymer into existing or new product lines, potentially reducing long-term development costs and improving product performance.
Part 2
**3. Intellectual Property (IP) and Exclusivity:
The strength and scope of Elast-Eon™'s patents, along with exclusivity rights in specific medical applications, would significantly impact the deal’s value. Comprehensive IP protection can enhance the bargaining position of Rua Life Sciences.
**4. Stage of Development and Regulatory Approval:
The level of clinical validation and regulatory approval (e.g., FDA, CE mark) achieved for Elast-Eon™ in heart valve applications affects its market readiness and, consequently, its valuation.
3. Estimated Valuation Range
**1. Sale of Rights:
Estimated Value: $150 million to $400 million.
Context: Based on the strategic importance of Elast-Eon™ in structural heart applications and comparable deals in the medical technology space.
**2. Licensing Agreement:
Upfront Payment: $30 million to $100 million.
Milestone Payments: Up to an additional $200 million, contingent on achieving specific development and sales targets.
Conclusion
Rua Life Sciences could potentially receive a valuation in the range of $150 million to $400 million for selling the rights to use Elast-Eon™ in heart valve applications, based on comparable sales and licensing deals. Licensing the technology could also provide substantial immediate and future revenue, combining an upfront payment with milestone-based earnings.
These figures are indicative and would ultimately depend on negotiations, the competitive landscape, and the specific strategic needs of the acquiring company.
Well played NickE. This is what attracted me to RUA years ago!
Bill Brown once told me that the last great feeding frenzy in this market was around 2015 when TAVI was the breakthrough (feeding the valve into the body via artery and catheter). Several technologies were bought by all the majors for those nine figure numbers way before official trials. Edwards made hay with that.
Polymer (ie, non animal derived) materials are likely to be the next. Whilst Foldax has some pure polymer valves already in patients in early tests (IDE - Investigational Device Exemption (IDE)FDA (.gov)https://www.fda.gov › medical-devices › investigational-... ), RUA have pushed on from their own pure polymer prototypes to create a composite material which is textile based and mixed with Elast-Eon polymer to create a material far stronger and thinner than pure polymer.
Thus, if the major sees this for itself after testing, the prospects here are good. Given that other majors are swimming in the same pool, they might want to pay well to secure the technology.
Excellent posts from both. Really puts the potential in black and white comprehensively - and unbiased / independent .
EV of £2.8m truly a farce, its just so few are aware - glued to crap like MATD etc !!!