Biotech Values

[DewDiligence]

BMY MJN:

Any board opinions on benefit of tendering in the upcoming BMY exchange for Mead Johnson.

The foundation I advise has a good-sized position in BMY; I’m leaning toward not exchanging BMY shares for MJN, despite the built-in inducement, because:

• MJN has had a big run and may now be overpriced.

• MJN’s products are vulnerable to private-label competition insofar as MATK sells the key DHA and ARA ingredients to any vendor who wants them on a non-exclusive basis.

• I think BMY is being cleaned up for an eventual sale to SNY, GSK, or NVS.

Before deciding whether to tender, I’ll wait to see the final exchange ratio, which BMY will announce before the market open on Dec 11.