Biotech Values

[DewDiligence]

VRTX – Praveen, if this was such an extraordinarily great deal for VRTX, as you and rkrw assert, why is post-deal share price $3 below where I shorted VRTX following their data release at EASL in April (#msg-10763498)?

Please don’t give me some crap about the general market or the biotech sector because there’s a simpler explanation: after the data VRTX released at EASL, investors had every reason to assume that VRTX would ink a partnership deal of at least the magnitude of the deal actually struck with JNJ. Hence it makes prefect sense, to me at least, that all the stock has done on the heels of the JNJ deal is to retrace some of the sell-off of the past two months.