Replies to post #64292 on Biotech Values

[medchal]

I have followed LEVP a little and made some money on it (and another chunk today if the buyout holds up). I liked the heavy positions taken by members of management out of their own pockets, and posted about it a couple of times.

I have not followed VPHM and have no idea (nor do I care much) whether this is a good deal for that company. Give me cash and/or a wide collar and I'm happy. I seldom hold the successor company.

[rkrw]

They didn't use all their cash. vphm has $600M cash and is throwing off cash flow. I think the deal will work out well for them.

[zipjet]

LEVP: I have owned both LEVP and VPHM.

The buyout looks to me like classic VPHM - buy a cash cow and milk it while working on other drugs - this time Camvia. The business model allows funding of development without the need to dilute the holders. I like that. They still MUST develop something with the money.

The deal also seems favorably priced for the buyer. :-( I owned the selling company. Still better than a loss anyday.

LEVP at the close is still pretty cheap from a merger arb perspective.

I also am again long VPHM which when it fell under the collar this morning looked irresistible.

zip

[DewDiligence]

Re: Attributes of HAE candidates from LEVP, CSL, Pharming

Please see #msg-29201262 for background info on this topic.

p.s. Although VPHM and LEVP assert that Cinryze could be given subcutaneously, this would entail new clinical trials to establish safety and efficacy, so it won’t happen soon.