Biotech Values

[DewDiligence]

The CLDX-CRGN PR is bizarre in that it never mentions the exchange ratio for the stock swap or the nominal deal price for CRGN shareholders. However, by simple arithmetic, the nominal value of CLDX stock to be received by CRGN shareholders is about $1.65, a 50% premium to CRGN’s share price at Wednesday’s close. (On Thursday, CRGN was up sharply on very high volume, so clearly the deal terms leaked.)

http://sec.gov/Archives/edgar/data/744218/000104746909006056/a2193304zex-99_1.htm

Notably, CLDX is paying only $40M in stock for the acquisition when you net out CRGN’s cash and debt.