Biotech Values

[mcbio]

I cannot concur with your characterization of the ICGN buyout as pathetic insofar as the buyout price of $6 is a 150% premium to ICGN’s unaffected share price. This is one of the highest premiums in any recent biotech acquisition (#msg-65401590).

The ~150% premium isn't so impressive when you are starting from a measly ~$15M market cap. I think it's important to take the premium in context with the market cap. I.e., if you are starting with a much lower market cap then, all things being equal, the percentage premium should be a lot higher. I simply think in this specific case that the premium should have been a lot higher, or at least should have had some type of CVR attached, given what is still an extremely small market cap IMHO at the takeout price for ICGN in light of the novel pain drug that PFE is clearly interested in given their existing partnership with ICGN.

Assuming the share price must go up when a company in play gets acquired is just as silly as assuming the share price must go up when a company gets FDA approval. People on this board are too smart for that, IMO.

I don't automatically assume the share price must go up when a company in play gets acquired. I think it depends on the share price/valuation. And in this specific instance, given ICGN's existing partnership with PFE for the novel pain drug, and the fact that ICGN would have in all likelihood received $10M+ plus in cash from PFE next year for advancing the drug into Phase 2, I just feel that ICGN sold out way too cheap.