Replies to post #57945 on Biotech Values

[rstor1]

HGSI,

Does anyone think that they are a value play now? If not now, at what price point? With the TEVA $ they have ~600mil cash and ~750 mil debt, but even if you assign albuferon a value of zero, the have the Lupus drug in PIII and a revenue stream form the DOD starting this year.

On a side note - I was a proponent of the January effect in micro bios. What a slap of reality from the market for that idea this year!

Regards,
Bob

[microcapfun]

>>Q: Was Teva blindsided by the Albuferon problem… or did Teva know about it and use it to negotiate a lower acquisition price?<<

My guess is that they were blindsided - and if the breakup fee isn't too large, it wouldn't surprise me greatly if they paid it.

On the other hand, the pulmonary side effects may well be specific to albumin fused with IF-alpha. Apparently there are low levels of that AE with IF-alpha alone.

micro