Biotech Values

[mcbio]

BMRN, AFFY, THRX, and RIGL are the most likely candidates for the next significant biotech buyout, according to Piper Jaffray:

I'll be surprised with RIGL and I certainly don't think that could happen until at least after their initial Phase 3 results on fostamatinib. And there is substantial risk that the initial trial results are negative, given that this patient population failed in Phase 2. Also, RIGL doesn't seem to me to be in the best competitive position in the RA space given they are behind the initial JAKs and now Galapagos seems to be building buzz behind RIGL with their JAK1. It's still a big market obviously and RIGL is due lucrative economics from AZN on fostamatinib so I guess there's a possibility. Think the key will depend on those initial Phase 3 results and what happens to RIGL's valuation. If positive and stock not substantially higher, I could see a potential buyout and could also see the same if initial results are negative and shares get crushed just because I think there is reasonable chance of success for the other Phase 3 trials.

RIGL has a pipeline beyond fostamatinib but it looks like they have shelved their novel MS drug that was in the early stage of development as I see no more reference to it on their Web site.