Biotech Values

[oc631]

So what does ACHN have besides false takeover rumors?

The problem with the takeover thesis is it's already built into the current valuation. In a perfect world where shareholders come first this company could agree to be acquired in an all stock, at-the-market takeover deal by VRTX thereby pairing ACHN's pipeline with a mid-stage nucleotide analog backbone.

What gets in the way of this logical solution is executive compensation and perks lost along with an over-inflated share price. The management and directors will continue to be compensated handsomely as the prospects for this company diminish into the future. My feeling is VRTX would never pay premium for this company. Nor should they.