Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

Again, Auspex is being bought at a price of $3.5 B for their tech that Teva expects to be a gold standard and for which there are NO CURRENT REVENUES. Thus, it would seem either Teva is foolish (and their history of acquisitions suggests they are not) or they completed an internal valuation analysis that argues the projected future revenues justify the price. Since the shareholders of Teva are not voicing any complaints (including institutional shareholders not noted for patience), I suspect the deal seems reasonable. Similarly, the logic for the purchase price for Elite would be based on revenues projected in an analysis by any potential suitors.

If you want logic, it is readily available. Unless you are merely commenting on King and PFE deal.