Biotech Values

[exwannabe]

Re: ZGEN

The Atacicept deal is fairly obviously about cash. Seams like it saves them enough cash to last out a 2 year ramp up of RecoThrombin. And despite some naysayers, I still believe the RecoT is a lock (some people just have NO patients).

So they trade [(50% US profits) - (15% US royalties) ] * risk against up to $300m of costs savings over the next few years. Seams OK when you consider it enhances the pipeline value (as significant dilution is far less likely)

On a related issue, they also dissolved the joint preclinical R&D projects they had with Merk Soreno, and split the pipeline. Perhaps just tiding up loose ends in case of an offer?