I've followed biotech for a long time now, and I have a hard time thinking of an example of another addressable market like hepatitis C (HCV) where investor interest has just exploded in the space of about a year. Like antisense, monoclonal antibodies, RNAi, genomics, stem cells and every other hot property in biotech, there has been no end of hope, hype, and hucksterism. Although HCV is likely to grow into a very financially significant drug target in the coming years, it's worth wondering just how much of the frenzy today can be justified in long-term valuations.
In particular, I'm curious about Achillion Pharmaceuticals (ACHN) these days. I've watched this stock for a while now and came close to buying on multiple times in the pre-2010 pre-$2 level. I underestimated just how fast this market would heat up, though, and had to re-learn a painful lesson - sometimes, you snooze and you lose.
Read more here:
Achillion Pharmaceuticals: Hope, Hype, And Hep C
Showing posts with label Medivir. Show all posts
Showing posts with label Medivir. Show all posts
Tuesday, March 27, 2012
Monday, January 9, 2012
Investopedia: Bristol-Myers Pays To Patch Up A Gap
Companies developing treatments for Hepatitis C were the hottest story in biotech for 2011, and at least some of that momentum has spilled over into 2012. Bristol-Myers Squibb (NYSE:BMY) won a competitive bidding process for Inhibitex (Nasdaq:INHX) and will be acquiring this small early-stage biotech for $2.5 billion in cash.
The Deal
The two companies announced this deal over the weekend, whereby Bristol-Myers will buy Inhibitex for $2.5 billion, or $26 per share, in cash. This valuation offers a 163% premium to Friday's close for Inhibitex shareholders and a close to an incredible run that began at less than 25 cents per share in early 2009. Although this offer is lower than Gilead's (Nasdaq:GILD) $11 billion bid for Pharmasset (Nasdaq:VRUS), Pharmasset has more drug candidates in its pipeline and is further along in clinical trials. (For related reading, see Biggest Merger And Acquisition Disasters.)
Read more here:
http://stocks.investopedia.
Subscribe to:
Posts (Atom)