Biotech Values

[rkrw]

NSTK. I look at it more as a very cheap call option for MRK. Sales milestones are nothing, since if met, then MRK will be happy.

Been quite a few similarly structured deals of late. Very low upfront. Backside of deal provides the upside to the bio. Seems like a good option if you're not so strong.

This is risk aversion for the bio. Invest in the phase II and grab 10X more upfront if the data is good? Or invest in the program and down the drain if not? So grab something now, hope for the best and invest in other programs with better risk profile for nstk.

For mrk, they don't like what they see in the phase II or if the competitive landscape changes, they drop it and suffer no great loss.

If I was lucky enough to be in nstk I would be out today. Deal imo is no great shakes, not worthy of +41%. Seems like a gift.