Biotech Values

[turtlepower]

VNDA -

$200M up-front and $265M in potential milestones is not $465M of NPV

My point is that assuming the milestones are met NVS will pay VNDA 465 million + royalties which will more than likely exceed 500 million. The after hours price appears to be around 14 which values VNDA around 400 million. I was wondering what VNDA is going to do with that money and it may have been better off for both parties if NVS had just bought VNDA for about 500 million. NVS gets Fanapt and a jet lag drug and investors of VNDA are happy as well including that Tang guy.