Biotech Values

[mcbio]

Re: GSK/FOLD Fabry deal

GSK, FOLD ink Fabry collaboration:

www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201010290531dowjonesdjonline000315&title=glaxosmithkline-and-amicus-therapeutics-enter-amigal-pact

The up-front amount is $60M of which half is a 19.9% equity stake purchased at $4.56/sh.

Nice deal for FOLD. I thought they were in some trouble, but this deal breathes some new life into them. I still am curious as to why Shire walked away from Amigal in Phase 3, because I don't believe Shire has exactly abandoned orphan-type diseases, have they? It's one thing when big pharma abandons a joint-venture with small-cap biotech due to changes in strategic priorities, ending its focus in certain disease areas, etc., but I don't think that applied with respect to Shire. I.e., I thought Shire's walking away from FOLD's Amigal signalled either an issue with Amigal or an issue with the market potential for Amigal. Obviously GSK sees something that Shire did not.