Biotech Values

[vinmantoo]

Dew, here is the relevant paragraph from the press release. After the merger, PGNX shareholders now get 0.31 shares of the new company instead of 0.25 shares, or 40% of the combined company vs 35% in the original agreement.

Under the terms of the Amended Agreement, Lantheus will acquire all of the issued and outstanding shares of Progenics common stock at a fixed exchange ratio whereby Progenics stockholders will receive, for each share of Progenics stock held at the time of the closing of the merger, 0.31 of a share of Lantheus common stock, increased from 0.2502 under the Original Agreement, together with a non-tradeable contingent value right ("CVR"). The CVR is payable in two separate cash payments if PyLTM (18F-DCFPyL), Progenics’ prostate-specific membrane antigen targeted imaging agent designed to visualize prostate cancer currently in late stage clinical development ("PyL"), exceeds net sales thresholds of $100 million in 2022 and $150 million in 2023. As a result of the increase in the exchange ratio, following the completion of the merger, former Progenics stockholders’ aggregate ownership stake will increase to approximately 40% of the combined company from approximately 35% under the terms set forth in the Original Agreement.

There is also a CVR depending on sales of PyLTM, their prostate cancer imaging agent but I don't see how much that would be worth per share to PGNX shareholders. PGNX is up 10% today to just over $5 so I sold off half my shares today. I need to consider if, or rather how much more I will sell. I am pleased that I will have more cash on hand as I expect real problems with the market, sooner rather than later.

PGNX and I have been down a long frustrating road. In some ways it reminds me of GTCB, but at least with PGNX I bought and sold over the years to pocket some cash. If I sell all my shares I will have made some 20% but I would have been better off not having investing in PGNX and just buying into an index fund. I may increase my ABBY shares as I like that almost 5% dividend, or maybe buy a bit more ENTA.