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Re: TR4GEDY post# 397

Tuesday, 06/10/2014 10:38:42 AM

Tuesday, June 10, 2014 10:38:42 AM

Post# of 810
3 major catalysts:

1: Yesterday, Idenix got bought for a 250% premium, roughly. others wanted to buy it as well but missed out. They want into HCV market. Achillion is next in line, assuming they get Sovaprevir off hold, and other combo therapies go well.

2: Today, Sovaprevir hold got lifted by the FDA, as the CEO hoped when he gave presentations in March and May.

3: Soon, there may be an acquirer of ACHN either by a JNJ type company who has a massive distribution network worldwide and needs drugs in its pipeline, or by Abbvie or Gilead type companies who want to keep additional kids out of the sandbox.

Those are my thoughts at least... I posted some due diligence links yesterday if you want to read more about the company.

If there's a buyout, i'd expect it to be in the $1.2-$1.5B range, unless bidding escalates it higher. With 96.5M shares outstanding, that'd be a share price of $12-15.

Otherwise, if no buyout, ACHN could be in line for multi-billion dollar revenues in about 2-3 years depending how the pipeline development plays out. Depending on how they structure Phase 3 financing and revenue sharing, could end up being worth about $8-10/share per billion in revenue. A $3B revenue might put them around $25-30 share, if they have good growth potential and anything else in the pipeline for development...

Or if they do not get bought out, and trials do not prove out, could crash and burn... Hard to take that option off the table completely in biotech...