Biotech Values

[oldberkeley]

RE: Recent Biotech Buyouts at a Large Premium

Dew- I've been thinking about this lately re GTCB.

I posted a comment on that board about Wednesday's 400% premium to market buyout of MEDE. One poster countered that while this number seemed impressive, the precipitous decline of MEDE's share price up to that point had to be taken into account. I think there's some validity to this.

It would be a time-consuming exercise, but I wonder if a more accurate assessment of a deal would be to compare the buyout price to a long-term moving average of a stock, or some similar rubric that considered the bigger picture.

Your thoughts? TIA.