Replies to post #80399 on Biotech Values

[DewDiligence]

JNJ ELN: That was my exact feeling, it is a great deal for J&J and an act of desperation, born out of mismanagement for ELN as ELN has given away the crown jewels.

The market did seem to get this one wrong, although the closing price (+9%) was less aberrant than the intraday high (+23%). It’s reassuring to know that we agree—I saw several posts today asserting the opposite viewpoint and was beginning to wonder if I was missing something. Regards, Dew

[Lungman424]

If Bap succeeds...you're right JNJ made a great deal...Now Bap's chances of succeeding are probably somewhat greater now that JNJ is involved, but less not forget that Alzthiemer, like Lupus drugs have a pretty big graveyard of failures. I'm doubtful if ELN could have struck a better deal, (obviously JNJ wasn't the only player at the table) and to say ELN made a bad deal, is to say that not only every other company that passed on Bap also showed at lack of acumen, but that Citi did a poor job in shopping it. I'm doubting ELN could have recieved a better bid, even if they had a clean balance sheet...and I also doubt ELN could have every brought BAP to market without JNJ. The deal is a crapshoot for JNJ, they got the money to shoot craps...12-18 months when BAP blows up (and it probably will) people will look at ELN and say..wow next to DuPonts selling it's Pharma to BMY and the AGIX exec's lining there pockets with Wyeth's money, ELN shaking JNJ down for a 1B was a great deal for ELN...