Replies to post #522 on Eagle Pharmaceuticals, inc. (EGRX)

[DewDiligence]

The counter-argument is that Teva could have acquired EGRX more cheaply in Feb 2015, when they instead settled all litigation with EGRX and licensed Bendeka.

[stugwins]

I'm sure EGRX and TEVA are discussing a buyout but haven't agreed on a price yet. TEVA is posturing that 3.5 years of sales is pretty much it and after that Glenmark (with other generics) will enter. They seem to push this argument pretty aggressively (and emotionally as seen from the CEOs response on this issue during the last CC). We do not know, however, what the terms of the settlements with the generics are (and of course TEVA isn't motivated to release them especially if they are favorable to them and protect the franchise beyond Nov2020). This would immediately add a few hundred millions to the price of a potential EGRX buyout. I personally do not believe that TEVA, despite having a strong hand regarding the claims, settled with the generics on unfavorable terms. They know this space too well to do such a dumb thing. Thus, Bendeka sales are likely to continue robustly past 2020 and TEVA needs to pay a hefty premium if they want to buy EGRX. This explains the price today (not the peanuts from the other products/pipeline...).