Biotech Values

[DewDiligence]

Musings on the IDIX share price during the past few days:

In the three days prior to today, the share price rose 44%; then, today, the price retreated 25%. All told, the share price is still up significantly during this 4-day period.

The 44% pop in the three days prior to today was based on nothing but speculation from two analysts’ reports that were circulated last Thursday. In #msg-39658829, I noted how these reports said nothing that readers of this board did not already know. Certainly, there was nothing in these reports to warrant a 44% pop in the share price.

My guess is that Leerink Swann and Thomas Weisel (the authors of the two reports) are angling to handle IDIX’s next financing transaction and these firms were responsible for much of the buying on Thursday, Friday, and yesterday. As noted in #msg-39717323, I think it’s likely that IDIX will raise money opportunistically during the remainder of 2009. It’s a good bet, IMO, that one or both of the above firms will be the placement agent.