Biotech Values

[DewDiligence]

Re: Vertex Pharmaceuticals to Receive $155 Million in Cash Related to Future Telaprevir Milestone Payments

This is within the $150-175M range I expected in #msg-39423777; i.e. it’s a 30-40% discount to the $250M maximum nominal value of the milestones, which takes into account both the present-value arithmetic and the risk that the milestones won’t be triggered on time (or at all).

The more interesting VRTX news today is the abrupt departure of Kurt Graves with no explanation, which has to be construed as bearish, IMO.