Biotech Values

[DewDiligence]

It’s reasonable to surmise that ABBV and ENTA have had in-depth discussions about an acquisition. The hang-up (IMO) is probably disagreement over how much value to ascribe to ENTA’s EDP-239 partnership with NVS.

Addendum: Any ENTA long rooting for a buyout should be hoping it happens later rather than sooner because a deal would likely be for cash rather than stock and the tax hit on a near-term deal (taxed at ordinary-income rates) would be punitive. (Also see the bottom of #msg-94843381 re the ObamaCare surcharge on investment income and capital gains.)

Those who own ENTA mostly in an IRA or who have sizable tax-loss carryforwards may ignore the above and root for a near-term buyout, LOL.