Biotech Values

[DewDiligence]

Chronology of NVS’ Equity Stake in IDIX

[These numbers are unchanged from the prior post; I’m reposting
because I’ve separated the NVS-related info from the calculation
of the share count for valuation purposes in #msg-49744186.]


All told, NVS has invested $411M to purchase 31.3M shares of IDIX at an average cost of $13.12. These shares comprise 43% of the 72.9M basic shares outstanding and 40% of the 78.9M shares I use for valuation purposes (#msg-49744186).

NVS’ shares of IDIX were acquired in the three main transactions shown below. (There were also a few small “true up” transactions that permitted NVS to offset the issuance of IDIX shares from the exercise of employee options.)

• 8-May-2003. NVS bought $255M worth of IDIX shares at $12.23 per share as part of the initial partnership agreement between the companies.

• 27-Jul-2004. NVS bought $76M worth of IDIX shares at $11.63 per share, pursuant to contractual rights in the 2003 agreement between the companies. (This purchase consisted of 5.4M shares at $14.00 and 1.1M shares at no cost.)

• 31-Oct-2005. NVS bought $80M worth of IDIX shares at $20.61 per share as part of a public offering.