Biotech Values

[mcbio]

MRUS +35% on 4Q19 results:

https://finance.yahoo.com/news/merus-announces-financial-results-fourth-200110161.html

I don’t follow the company closely.

Well, I do as I'm still long. ; ) I have to admit I don't know what to make of all the high-level executive departures of late. The CEO, CMO, and CSO have all recently left or announced intentions to leave. I normally take it as a bearish sign when the high-level execs start to leave. I guess the counter-point hopeful thought would be it could be a sign they are trying to sell the company. That is the only positive spin I can put on this. All told, when multiple high-level execs leave, I think it's either a very bearish or very bullish sign but I probably lean more to the former. For now, I've decided to still hold as I have always liked their broad pipeline, nice INCY partnership, PoC with lead drug in NRG1+ cancers last year, decent cash position, and what I thought was a reasonable valuation.

That said, the numerous high-level executive departures substantially increases the risk I think. I know I have seen examples in the past where multiple high-level executive departures have preceded a buyout. But, there are also recent examples in SYBX and EDIT where this was not (at least to date) the case.