Relypsa Inc (RLYP)

[BigGreen101]

I do no think RLYP has the cash to go a couple years and wait for awesome script numbers and EU approval. I think EU approval is at least a year away and then building that market.

The main question is what is a fair price for RLYP? I think any offers provided thus far have been too low. Otherwise RLYP would have sold itself by now. We might be in at a point where big pharm is willing to pay a little more now than a few months ago when biotech stocks were down significantly for the year.

One point of reference for a buyout is the 52-week high. They would be about $1.62B, which was lower than a share offering a few years ago. I believe $38/share would be the break even point for those investors. I feel that $1.62B offer would be too low for management to accept. Some of the tax carry-forward credits expire next year, making a deal more likely this year IMO.

Cheers!