I would be disappointed in a $50 buyout but from management’s perspective I can see them seriously considering it. Investors know that in a couple of years the share price will easily double with pozi and Rolontis success. It’s the old ‘a bird in the hand is worth two in a bush’ scenario.
I always envisioned a licensing deal for pozi w big pharma who are already involved w TKIs in NSCLC mutations since you wouldn’t need any additional sales people to market it. Ditto w a buyout. Roche has Alecensa for the ALT mutation. I can see them having some interest in Rolontis too since if memory serves me correctly they sell Neupogen in the EU. But there are a lot of other players in this space. It’s a big list and I bettcha they all would like to have this little gem pozi which is way ahead of anything else in the exon 20 insertion mutation space. As we found out from Dr. Heymach in a video a couple of months ago, it has a WW potential of 40,000 patients. You don’t need to be a rocket scientist to figure out the potential sales revenue from treating those patients and hence the disappointment in a $50 buyout.
Having said all that, I have to tell ya, I was in a company, Medarex, that got bought out by BMS years back. Medx had 2 gems in their pipeline which turned out to be multibillion $ drugs Yeryoy and Opdivo. I got a 4 bagger out of that deal but I was still very irate because you knew of the potential of those 2 drugs. With Medarex, they recently changed longtime management w the new CEO working from an office in California whereas everybody else was in NJ. In about a year’s time after he was there, he sold the company. I’m saying all this because I believe current management has skin in the game so I don’t see them selling but this buyout rumor was perfect in giving the shorts agita. Normally in a week before news, be it the quarterly CC or the Rolontis CC tomorrow, you see a pattern of the share price under some pressure so when (if) good news hits the SP goes up but from a lower level. So this rumor was perfect if it turns out to be just a rumor while getting new investors to check out the company. Well played if that’s the case!
