Biotech Values

[DewDiligence]

If my arithmetic is correct, PGNX shareholders are getting $5.13 of nominal stock value in the revised deal (based on LNTH’s 2/19/20 close), compared to $6.01 of nominal stock value in the original deal (based on LNTH’s 10/1/19 close). I.e., even though the exchange ratio for PGNX shareholders has increased from 0.2502 to 0.31, the 32% decline in LNTH’s share price between 10/1/19 and 2/19/20 (inclusive) outweighs the higher exchange ratio.

Based on the 2/19/20 closing prices, the deal premium is about 13% and the deal value is about $440M (excluding any value for the CVR).