That’s just not true. PPS is current indicative price the free market gives us. It is the benchmark for where BOs start and even to an extent where they end. Please show me a case where a company was offered less than their current (or very recent) pps, and a case when a fairly sized company like amarin was offered a significant multiplier (5-10x, so a 5bil market cap was offered 25+ BO). It just doesn’t happen. The fact Pfizer could acquire 10% of amarin on the open market for 18-23 right now is one of the reasons for this.
Someone please correct me if I’m wrong, but BOs are always predicated on current PPS/market cap. That’s the only fair baseline you work with. Any BO you ever see will be announced in terms of premium vs current share price, no premium vs what people think the value is. With 60-70%+ institutional ownership (which wel have Q1 next year), anything close to 100-200% premium on current PPS for a BO in the range of 20bil+ would be extraordinary and voted for immediately if made public. I don’t think there’s an instance (not one I’ve read about or seen) where this wasn’t the case, and I can’t think of any 15bil company that was offered more than 100% premium. Tying everything back to the current market price’s relevance. This is why JL and others prefer the GIA instead of BO, in the next 3 years it will not see a $300+ BO most likely, that high would take 5 years + because PPs needs to catch up with sales and broadness of what the drug can capture (diabetes, dry eye, other inflammation)
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