Replies to post #68633 on Biotech Values

[DewDiligence]

NVS’ cost basis for its IDIX shares is $13.12. All told, NVS has invested $411M to purchase its 56% equity stake in IDIX.

NVS’ shares of IDIX were acquired in the three main transactions shown below. (There were also a few small “true up” transactions that permitted NVS to offset new IDIX shares from employee options.)

1. 8-May-2003. NVS bought $255M worth of IDIX shares (20,856,739 sh @12.23), which gave NVS a 54% stake. This purchase was part of the initial license and partnership agreement between the companies.

2. 27-Jul-2004. NVS bought $75.6M worth of IDIX shares (5.4M sh @14 and 1.1M sh at no cost), pursuant to contractual rights arising from the 2003 agreement between the companies. This purchase raised NVS’ equity stake to 56%, where it stands today.

3. 31-Oct-2005. NVS bought $80M worth of IDIX shares (3,939,131 sh @20.61) as part of a public offering. This enabled NVS to maintain its equity stake at 56%.