Biotech Values

[jbog]

I'm not impressed by anything Elan has done in recent memory, but that isn't to say they made a bad deal. I like the fact that they committed 20% of the THRX proceeds to be spent as a direct dividend much like their Tysabi agreement.

Between you and I, they could have probably obtained a better deal if they just purchased 25% to 30% of THRX stock for their Billion dollar investment.

People have mentioned that Elan did this deal to spoil the Royalty Pharma deal, but considering Elan only had $200k of revenue last quarter it looks to me that Elan might want to become a Royalty Pharma type of investment corporation.

Time will tell.