Biotech Values

[wallstarb]

Based off my back of the napkin calculations NABI seems somewhat cheap on this deal assuming the following

B NABI @ $1.60 --> recieve $1 cash dividend premerger. so $0.60 a share * 42m shares = $25m valuation for 1/4 of the new NABI which will have about $100m cash and several approved drugs and a HCV pipeline (albeit early stage) - seems like a potential diamond in the rough and I don't mind starting some accumulation with a $100m market cap for the new NABI (Biota).

This seems like a CHEAP way to access Biota at the $1.50 - $1.70 level - not to say during summer duldrums NABI can't go lower but a decent risk/reward imo.

"Following the closing of the merger, Biota Pharmaceuticals, Inc. will have three royalty generating products, Relenza, Inavir and potentially PhosLyra; two clinical programs, vapendavir (a phase III-ready human rhinovirus program), as well as a US$231 million contract with BARDA for the advanced development, in the US, of laninamivir (a long acting anti-influenza neuraminidase inhibitor). In addition, the combined company will have an interest in NicVAX and several pre-clinical programs, including respiratory syncytial virus (RSV), hepatitis C (HCV-NN), broad spectrum antibiotic targeting gyrase (GYR), as well as over US$100 million in cash with which to develop its program pipeline. "