Biotech Values

[DewDiligence]

Re: NVS’ equity stake in IDIX

…the 31,309.498 shares [NVS] owns will be more than a little under 50% of the outstanding after the financing is completed.

That’s correct. Including the 7.25M shares from the new financing, there will be 66.4M basic shares outstanding of which NVS will own 47%.

Since NVS does not own any stock options, NVS’ stake on a fully-diluted basis will be about 45% (based on my calculation of 70M fully-diluted shares for valuation purposes).

The significance of all this? For the first time since 2003, NVS will not be a majority owner, and hence IDIX could conceivably become a buyout candidate for a suitor other than NVS.