Biotech Values

[DewDiligence]

New survey re GILD’s acquisition of VRUS:

Cost: GILD has offered to acquire VRUS for $11B in cash, paying an 89% premium to VRUS’ closing price on 11/18/11; this is the highest premium for a $10B+ deal in the history of the biotech industry.

Benefit: GILD gets PSI-7977—VRUS’ nucleotide polymerase inhibitor entering phase-3 that is being tested in various all-oral combinations with drugs from BMY, JNJ, and VRUS itself—and the rest of VRUS’ HCV pipeline, which includes PSI-938, a nucleotide in phase-2b, and RG7128, an older nucleoside in phase-2b that is partnered with Roche.


Q: Which of the following most closely matches your opinion of the GILD-VRUS deal?

a) GILD overpaid relative to what VRUS is worth.
b) GILD underpaid relative to what VRUS is worth.
c) GILD paid about the right amount.


To vote, please go to
http://www.investorshub.com/boards/board_surveymenu.asp?board_id=1418
and select survey #145.

Note: You may vote in any listed survey in which you have not already voted.