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Thursday, 10/18/2007 2:49:49 PM

Thursday, October 18, 2007 2:49:49 PM

Post# of 3562
TEVA+MNTA: Hedged or doubly-exposed?

Is an investor who is long TEVA and MNTA hedged vis-à-vis Copaxone or doubly exposed?

The argument for saying a long position in both stocks is hedged is that an unfavorable patent ruling against TEVA would benefit MNTA. On the other hand, the argument for saying a dual long position is doubly exposed is that a loss of Copaxone market share would hurt both companies.

Comments?

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