Biotech Values

[DewDiligence]

>Thoughts on Coury aside are you familiar with the Merck KG Generic business, do you think it is a good deal for MYL or just "empire building" at the expense of diluting shareholders?<

I think Empire Building is a factor in this deal, which is another way of saying that MYL is paying too much.

Coury has been promising Wall Street for some time he would engineer something big. The Merck KG acquisition certainly qualifies by moving MYL into the #3 position in generics worldwide, leapfrogging BRL. After being outmaneuvered with respect to Ivax and Pliva, Coury was afraid of being lambasted by the Street if he had missed out on one of the few remaining large-scale opportunities.

>I thought they may seek to diversify outside or perhaps get into Bio-generics.<

MYL will undoubtedly be a player in biogenerics (they are one of the answer choices in #msg-18672801), but they are IMO not as well positioned in that business as NVS, TEVA, BRL, MNTA, and GTCB.