What do you think about next Friday, over 100 million dollars on the table just with the 65 calls. We have quite a few that should have been traded as they are only up 100% but had been up 400%. Based on latest analyst report after the divestiture announcement it still sounds like they have to wait for definitive tax reform before any major purchase is done, although several analysts state they do not have to wait. From talking to friends that had very high Pharma positions absolute clarity will effect the structure and even finance terms of a major deal as it relates to bringing back foreign money.
Given the 55% price increase since rumors circulated in Febuary regarding PFE buying BMY and so many people calling it makes me a little skeptical. I would not be surprised if PFE buys someone else. OPdivo is a super strong drug with many indications but there are other companies that could fill the sales now goals of PFE.
Bmy could see north of 70 to its past highs of 77 just on tax reform, when you add in China deciding to accept outside regulatory trials all Pharma can see a boom. From what I understand the FDA equivilant in China was very tough to deal with.
Still bullish on BMY but more cautious on predicting PFE as buyer, even if they wanted to buy them there could be many details to agree on. And price is starting to get away now, most of these big deals have 30% premiums even though a 20% premium has been touted.
You are in a lot of Pharma, Aeri is one to watch. Got in at 11 after it collapsed from 33. Exited yesterday but they think they have north of a billion dollar a year drug. FDA says it works, safety is addressed today.
Next week could be wild for BMY, gonna spin the wheel and hold calls to see what happens. 100 mil is a big bet
