Biotech Values

[DewDiligence]

Re: BPMC CVR

The “Big Pharma doesn’t play fair” vig described in #msg-176422172 is undoubtedly affecting the imputed CVR value to some degree—possibly by as much as (negative) $0.30-0.40. It’s curious that the first CVR payout is triggered by enrollment of the fifth patient in the BLU-808 phase-2b/phase-3 trial. This gives SNY an opening to enroll three or four patients and then halt the trial for (alleged) safety reasons.

The probability of the above scenario is very small, IMO, but BMPC’s terminal shareholders might think it is larger than I do.