Biotech Values

[DewDiligence]

BMY-ZGEN post-mortem: A poster on another board called this buyout “a horrible thing” for ZGEN shareholders, claiming that the deal ascribes a negative value to the Lambda program after taking into account the milestone payments BMY would have owed. This is nonsense, of course; the potential milestone payments include $287M of clinical/regulatory milestones pertaining to non-HCV indications (presumably HBV) and $285M of sales-based milestones. It’s unlikely, IMO, that BMY would ever have had to pay ZGEN all of the latter or any of the former.