Avid Bioservices Inc (CDMO)

[biopharm]

Merck's $6 Billion drug would make Bavi/PPHM $35/share


If Merck's anti-PD1 drug beats BMS Yervoy (and it looks like it already has), and is worth $6 Billion, then what's Bavi worth?

Well, if Bavi is worth $6 Billion,, that puts PPHM at $35 bucks a share, + Avid, + Betabodies, + imaging, + Cotara. Add your typical multipliers and forward earnings in , and you'll see why folks can get a little animated around here.

When analysts say a Merck immunotherapy drug looks like a $6 Billion dollar drug, that should catch EVERYONE'S attention.

Bavi turns on the upstream lights for the downstream "anti-XYZ'ers" (as CP calls them). Merck will need Bavi and the anti-PS platform.

Their diabetes and cholesterol drug proftis are tanking and they're missing profit forecasts.

Mercks Big Earnings Miss

Their shareholders are best described as an unruly drunken mob.


Merck is an incredibly proud company with a very long history. But they've been slipping. They're like the Yankees. When they don't make the playoffs, (earnings) they then go out and pursue every talent out there to make sure it doesn't happen again.

I'll go so far as to predict that MERCK will be the partner for Bavi.

Why? Because they're winning the downstream anti-XYZ war. But they need the one upstream player out there: Bavi.

That's my call: MERCK


Best,

Joe

Joe, what do you think of Merck and playing with Bavituximab now?