Biotech Values

[10nisman]

Obviously not. It's why it was done in the first place. To build out a large work force/taxes make more sense in Nashville. Much cheaper overall operation, and much better for a long occupation.

Thank you for agreeing with me --- being in Nashville makes RVNC more attractive to a potential buyer.

If RVNC, you either sell it pre-sales or wait until you prove your thesis, and sell if for a much bigger number. That's the direction they chose and it takes a long time to pivot from that. Let me ask a question to help you contribute to the board instead of criticizing opinions of others.

How many deals have you done? I assume none. Had RVNC not fumbled the ball a few times, had COVID not happened, had interest rates not moved up 500+ basis points, RVNC being acquired at an attractive buyout price prior to ramped-up sales might have been in the cards. However, that's not what happened and talking about hypotheticals is usually a waste of time.

Foley is a deal guy and is here to maximize shareholder value not flip the business tomorrow for short-term profits for traders like yourself. He'll sell RVNC when it makes sense. This isn't his first rodeo.

You're Foley. What do you see as a BO price post CD approval. 5-7? Could have had it for 3-4 in Nashville.

What does "Could have had it for 3-4 in Nashville" mean? Are you trying to say RVNC could have been sold for 3-4 billion pre-Daxy approval in the middle of the COVID pandemic with a delayed review of RVNC's manufacturing facility? If so, based on what? Also, how did you arrive at 3-4 and 5-7?

Let's be clear. Nobody on this board knows what RVNC is worth pre-approval and post-CD approval to a potential buyer, just like every single potential buyer has a different economic value for RVNC.
There are a lot of factors that drive M&A and potential acquisition prices. Some buyers have natural synergies, some have a higher need for growth, buyers ability to effectively integrate / grow the business, what other acquisition opportunities exist, buyers Management / Board's willingness in doing a transaction (now vs. later), shareholders view of the deal, market dynamics / timing, competitor interest in the asset, long-term potential return vs. cost of capital, etc., etc.

Market dynamics / timing play a huge role in M&A, and the prices buyers are willing to pay. Look at the swing in deal volumes and valuations in just the last few years. If a legitimate and respectful offer is put forward, Foley will talk to the Board and start a formal sales process.

Follow up is, if you are a potential buyer, are you paying 5-7 prior to it proving it is worth that much, because it probably wouldn't be worth anywhere close to that multiple anytime soon

A potential buyer will pay whatever it thinks it needs to, to acquire an asset it desires. No different than winning over a significant other one desires.

Mentioned earlier were some non-Target factors that can drive what a potential buyer's willing to pay. Obviously, potential buyers are going to be willing to pay a lot more for a fully ramped, de-risked Target business, vs. having to ramp the business themselves. However, the expected returns for the asset will be that much lower (lower risk, lower return). Plus, there's added risk the asset won't be available if they wait until its fully ramped and de-risked.