Biotech Values

[DewDiligence]

BioMS implements Plan B: buying a controlling stake in another Canadian company called Spectral Diagnostics:

http://finance.yahoo.com/news/BioMS-Medical-provides-prnews-2173288487.html?x=0&.v=13

http://finance.yahoo.com/news/Spectral-diagnostics-Raises-cnw-3942098078.html?x=0&.v=2

BioMS dropped its drug for SPMS, dirucotide, in July 2009 (#msg-39934109), causing the stock to tank by almost 90%. For some reason, many investors previously believed that a drug with no efficacy in RRMS might work in SPMS, illogical as this may be.

After today’s financing, BioMS will hold approximately a 60% equity stake in Spectral on a fully-diluted basis. Spectral’s claim to fame is a device to “purify” the blood of people with sepsis.