Replies to post #178982 on Biotech Values

[DewDiligence]

MRK-IDIX deal dispels two longstanding biotech canards:

Canard #1
Big Pharma won’t pay a large premium to the market
price of a small or medium-sized biotech company.

Fact: MRK is paying a 239% premium to
IDIX’s closing price on Friday (i.e. the
buyout price is 339% of Friday’s close).

Canard #2
News of a biotech buyout always leaks.

Fact: There was no leakage in this case.

[Rocky3]

$IDIX $ENTA $GILD $ABBV $JNJ - Pretty confusing. Good news for ENTA or not? With ABBV reportly in the bidding for IDIX, what does that say about the ENTA partnership/drug/drugs? ABBV and JNJ still missing a part of a pan-treatment piece of the drug? Who might have it? Both ENTA and Medivir moving up today - any evidence that either may have the missing piece? If so, both are incredibly cheap - if not, neither may be worth much in a couple years. Other thoughts? Let's see if analysts address issues raised by MRK today.

[oc631]

MRK acquires IDIX for $24.50/sh in cash

In hindsight NVS giving up a seat on the IDIX BOD was a clue that the company was being put into play. Certainly this is a best case scenario for IDIX investors and kudos to IDIX management.

[biomaven0]

>>MRK acquires IDIX

Score one for Seth Klarman and Baupost. Some hurt for the shorts with 16% of the outstanding shorted.

http://www.fool.com/investing/general/2014/05/30/why-wall-street-hates-idenix-pharmaceuticals-inc.aspx

Peter

[jq1234]

MRK's Rationale for $3.85B IDIX Buyout:

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjM4NTQwfENoaWxkSUQ9LTF8VHlwZT0z&t=1

[DewDiligence]

Law firms think IDIX buyout price is too low (LOL):

http://finance.yahoo.com/news/idenix-pharmaceuticals-inc-shareholder-alert-172800739.html
http://finance.yahoo.com/news/idenix-pharmaceuticals-trust-shareholder-alert-171200907.html

[DewDiligence]

MRK’s IDIX gambit reaches end of the line:

https://www.reuters.com/article/us-usa-court-merck-gilead-idUSKBN29O1PX?taid=6007101a947f630001cccb5d