Replies to post #35943 on Biotech Values

[DewDiligence]

>I didn't hear the SGP call yet but did Fred say he wants to do a deal in general? …posters on investor village think an HCV one…<

Fred said nothing about a deal in HCV, specifically. However, HCV is a major franchise for SGP and it’s growing long in the tooth (#msg-14167340). So they do need to do something and fairly soon, IMO.

>Why would they be interested in Vertex is their (SGP's) protease inhibitor thought to be that much worse then Vertex's? I would think with Roche having a Polymerase Inhibitor that would be more the area of focus.<

Roche probably was interested in VTRX, as ‘gofish’ mentioned, but now they’re set with ITMN191. If SGP were to acquire VRTX, they could probably divest their own PI relatively easily.

So the combination (SGP+VRTX) does make a lot of sense, IMO. But the impediments (#msg-14169577) are fairly strong too.

Comments?

[DewDiligence]

Addendum re SGP and HCV acquisitions:

Although Hassan did not mention HCV acquisitions, specifically, during today’s CC, he evidently did in an interview later in the day.

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061020:MTFH90654_2...

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"Our cash flow is going very nicely, which allows us to be more opportunistic, move faster and look at interesting deals," Hassan said in an interview. He said he was particularly keen on acquiring new products to treat cancer, hepatitis C and inflammation.
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