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Message: Reply to my email re RPS

I must say that having read Sarah's reply to Led that it makes me a very happy Zenith holder but maybe not so much on the RVX side.  Sarah I think must have some seriously rose coloured glasses on her desk IMO. The way I read this Zenith will receive a never ending call on everything RVX develops where RVX only receives a $250,000 per compound savings. Not punitive but to me not a fair deal for RVX. I had to laugh when I read Sarah said that will save RVX around $2,000,000 dollars on the 7 compounds that it would like to take to the clinic currently.  As we sit RVX has taken roughly 15 years to get 1 compound to ph 3.  Even if they triple or quadruple their pace the savings will be miniscule per year.  I seriously hope I am wrong and they can make a few deals to get things moving at a much faster pace but I'm not holding my breath.  Meanwhile if they can pick up the pace Zenith will be in a very good place, having just added over 1000 compounds to its potential portfolio.  Just doing the math and basing it on the minimum royalty in the apabetalone model, Zenith will receive $60,000,000 for every 1 billion dollars of RVX future per compound sales, RVX will save the $250,000 per compound test fee.  Stated another way, if RVX reaches the minimum royalty threshold with just one in twenty compounds they take to clinic Zenith will earn the $60,000,000 and RVX will save $5,000,000.  I'm sure Eastern with their 38% ownership of Zenith is very happy with this deal.  That being said I still think Eastern has been nothing but spectacular for RVX and Zenith and deserving of everything they get. I hope they make out like bandits with both and we will all be happy. After all these years I still think the science team is stellar and getting better, business team pretty much still under-performers.  JMO

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