Biotech Values

[DewDiligence]

OPK/PBTH—I suppose I'm not the only one who finds it funny not to say unethical that Dr Frost, who acts as the Chairman of the board at PBTH and as the CEO and Chairman of OPK, actually sold a company in which he holds 20% (PBTH) to a company in which he holds 40% (OPK).

Well, one way of looking at this deal is to say that Frost is screwing PBTH shareholders by paying them with overpriced OPK shares.

With the 3% decline of OPK today, the nominal premium for PBTH shareholders has already shrunk from 20% to 17%; by the time the deal closes, there be no premium at all.