According to a Redeye analyst (content behind login), the buyout primarily reflects Alligator’s difficult financial situation. Cash shortage.
Orion may have thus acquired potentially promising drug candidates at a low price, but time will tell if they amount to anything. 1.75 million euros per acquired candidate does not sound like much.
We have valued the deal with Orion at SEK165m, which is a best estimate since we do not know the distribution of the milestone payments, the royalty rate etc. However, the sales price appears low and, we believe, testifies to a lack of liquidity at Alligator and a difficult financial situation.