Biotech Values

[DewDiligence]

XON acquires GNVC in all-stock deal:

http://finance.yahoo.com/news/intrexon-acquire-genvec-expand-industry-140000103.html

…GenVec stockholders will receive 0.297 of a share of Intrexon Common Stock in exchange for each share of GenVec common stock. This exchange ratio represents $7.00 per share of GenVec's common stock based on Intrexon's 5-day volume weighted average price as of January 23, 2017 [but only $6.56/sh based on XON’s latest price—see below].

GenVec stockholders will also receive a right to contingent consideration equal to 50% of any milestone or royalty payments received within 36 months after the closing of the transaction under GenVec's Research Collaboration and License Agreement with Novartis.

Based on XON’s closing price of $22.09 yesterday (rather than a 5-day volume-weighted average as described above), the deal is worth $6.56 per GNVC share excluding the CVR, which is a 44% premium to GNVC’s closing price yesterday.