Biotech Values

[DewDiligence]

BLUE-(-34%)—goes private in $3.00/sh takeunder:

https://finance.yahoo.com/news/bluebird-bio-announces-definitive-agreement-123000710.html

The buyers are private equity firms, Carlyle and SK Capital. There’s a CVR of $6.84 payable if BLUE’s products attain $600M in annualized sales before 12/21/27. At the current share price ($4.65 as I’m typing), investors are valuing the CVR at $1.65, implying a 27% probability that the CBR gets paid. Excluding the CVT, the $3.00 cash price is a 57% (!) discount to yesterday’s closing price.