Replies to post #194054 on Biotech Values

[DewDiligence]

I had a feeling BXLT would not stay independent for long.

Now we know why BXLT authorized a $1B share-repurchase plan only one month after coming into existence (#msg-115760632).

[DewDiligence]

SHPG CC slides re proposed BXLT merger:

http://investors.shire.com/~/media/Files/S/Shire-IR/presentations-webcast/year-2015/20150804-Shire-proposes-combination-with-baxalta-presentation.pdf

[DewDiligence]

I had a feeling BXLT would not stay independent for long.

Actually, I think SHPG’s offer for BXLT is unduly high, even though BXLT rejected it out of hand.

After listening to BXLT’s 4-hour Investor Day webcast in May, I concluded that BXLT has a weak portfolio and pipeline, especially in oncology (#msg-114360736). SHPG’s pursuit of a hostile all-stock* deal for such a company suggests desperation, IMO.

*Necessary to preserve the tax-free status of BAX’s spin-off of BXLT.