Replies to post #196533 on Biotech Values

[jbog]

The management of THRX could be one of the worse I've ever seen. I have a bald spot from scratching my head when evaluating their previous spinoff.

[DewDiligence]

THRX announces results of “Dutch-auction” tender offer:

http://finance.yahoo.com/news/theravance-inc-announces-preliminary-results-120000834.html

…Theravance expects to accept for purchase 2,580,103 shares of its common stock…at a price of $9.25 per share, for an aggregate cost of approximately $23.9 million, excluding fees and expenses relating to the tender offer.

…the 2,580,103 shares of Theravance's common stock expected to be accepted for purchase in the tender offer represent approximately 2.2% of Theravance's currently issued and outstanding shares of common stock… [Following settlement of the tender offer, THRX] will have approximately 114,898,507 shares of its common stock outstanding.

The $9.25 price is the upper bound (i.e. worst case) of the $8.50-9.25 range that THRX specified for the Dutch auction (#msg-118072287), but the amount spent on the repurchase ($23.9M) is only one-third of the $75M THRX was willing to spend (if selling interest by shareholders had been larger).

THRX plans to buy back approximately $125M of stock in the open market to attain $150M in cumulative buybacks including the tender offer.