Biotech Values

[DewDiligence]

Re: M&A 2014 predictions

I think I know where you are going with this so I'll beat you to the punch. After releasing the remaining Phase-3 data, and before filing the NDA, ABBV makes a very generous offer for ENTA. They bring the HCV combo solely in-house and adopt a pipeline of assets, which potentially could allow them to expand to other genotypes.

That wasn’t really what I was driving at, although ENTA might be a reasonable vote in the iHub survey under consideration.

As previously discussed, I don’t want ENTA to be acquired until at least August because I bought my most recent taxable-account shares in late July and I don’t want a large gain to be taxed at short-term rates. Moreover, I think ABBV and ENTA likely disagree about the value of ENTA’s HCV partnership with NVS, which makes agreement on a buyout price more challenging.