Benitec Biopharma Ltd (BNTC)

[Blane]

I have been long since October 2012. Here is an interesting portion I saw today regarding Abbvie and their desire to acquire Shire.

"Last year, Shire posted $4.93 billion in revenues and $1.73 billion in operating profits. AbbVie's latest offer would value the company at 11 times its annual revenues and 30 times its operating profits. This is the fourth time AbbVie is raising its bid while Shire's stakeholders were far from convinced in the previous attempts. Currently, AbbVie is offering Shire a much larger premium than the premium Covidien investors got when the company was acquired by Medtronic. It is very typical for healthcare companies to pay large premiums for acquisitions because drugs are getting more complicated and it is getting increasingly difficult to invent new drugs for complex diseases in order to compensate for the expiration of the current patents. In simpler terms, as the healthcare industry advances in terms of technology, the drug makers have to focus on more difficult and more complex diseases in order to make a difference. Any new drug has to bring something new to the table, and this is becoming increasingly difficult, forcing companies to chase mergers and acquisitions for growth."

http://seekingalpha.com/article/2311875-where-are-we-at-with-abbvies-acquisition-of-shire


If benitec shows it's tech works, I think we will again demonstrate a whole new era of disease treatment, and an acquisition or partnership may not be as far off as we think.