Biotech Values

[DewDiligence]

A few readers of this board profitably shorted IDIX at the height of the HCV M&A frenzy. It was a pretty good bet that the M&A lightning would not strike a third time, particularly given the encumbered nature of IDIX’s assets at that time.

The IDIX experience suggests a rule of thumb to guide investors: There are many copycat M&A deals that sport seemingly exorbitant price premiums (not just in biotech), but there are not many cases where it happens a third time in the same industry within a short time.