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Friday, November 16, 2007 1:24:36 PM
The COLY buyout dispels two longstanding biotech canards:
Canard #1
Big Pharma won’t pay a large premium to
the market price of a small biotech company.
Fact: PFE is paying a 167% premium to
COLY’s closing price yesterday (i.e. the
buyout price is 267% of yesterday’s close).
Canard #2
News of a biotech buyout always leaks.
Fact: There was no leakage in this case
(see chart below).
Canard #1
Big Pharma won’t pay a large premium to
the market price of a small biotech company.
Fact: PFE is paying a 167% premium to
COLY’s closing price yesterday (i.e. the
buyout price is 267% of yesterday’s close).
Canard #2
News of a biotech buyout always leaks.
Fact: There was no leakage in this case
(see chart below).
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
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