Biotech Values

[frontiers]

Remember a bidding war for Amlyn with a very marginal drug portfolio ending up with the final price of ~$7B? There are always plenty fools around.

The comparison of Amylin with ACHN is totally irrelevant!!!!

Here's an example of a "fool" in your world --

<<<<
Gilead Sciences' bold gamble pays off

While we understand the strategic rationale, the price tag is lofty for a pre-commercial asset and not aligned with what we would like to see from Gilead [Sciences] in terms of capital allocation," wrote one analyst in a note to investors on November 21, 2011. "The need to buy in to the hepatitis C market with such a big price-tag makes us question Gilead's core development capabilities in this space. Additionally, such a large deal into such a competitive market dynamic makes us more uncomfortable with the company's risk tolerance," the analyst added. Gilead's $11-billion acquisition of Pharmasset – the largest deal ever for a company with no products in late-stage development and valued at a 98 percent premium to its previous closing price – was certainly not without its risks. Despite positive mid-stage data, clinical risk for lead compound sofosbuvir was particularly notable, certainly until Phase III studies confirmed an efficacy and safety profile that looks set to position the drug as a backbone therapy for hepatitis C for years to come. The discontinuation of other drugs in the NS5B polymerase inhibitor class is arguably validation alone that Gilead may have paid top dollar for Pharmasset, but in doing so secured the best-in-class compound.
>>>>

If ACH 3422 is as good as sovaldi in efficacy and safety, I can see a price tag of $4-11 billion.

If you think an acquirer of ACHN at this price level is a "fool", I expect you also think Gilead was a fool to buy Pharmasset for $11 billion!!!!! Am I right?