Replies to post #107492 on Biotech Values

[ghmm]

FOLD:

Not as good as the Shire deal but considering where they were it sounds like a good deal for Amicus Shareholders (of which I no longer belong :-(). Curious I couldn't find an Amicus PR maybe the time difference for where the companies are based and Amicus will issue one soon. Its interesting all these companies getting into the rare disease space.

[mcbio]

Re: GSK/FOLD Fabry deal

GSK, FOLD ink Fabry collaboration:

www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201010290531dowjonesdjonline000315&title=glaxosmithkline-and-amicus-therapeutics-enter-amigal-pact

The up-front amount is $60M of which half is a 19.9% equity stake purchased at $4.56/sh.

Nice deal for FOLD. I thought they were in some trouble, but this deal breathes some new life into them. I still am curious as to why Shire walked away from Amigal in Phase 3, because I don't believe Shire has exactly abandoned orphan-type diseases, have they? It's one thing when big pharma abandons a joint-venture with small-cap biotech due to changes in strategic priorities, ending its focus in certain disease areas, etc., but I don't think that applied with respect to Shire. I.e., I thought Shire's walking away from FOLD's Amigal signalled either an issue with Amigal or an issue with the market potential for Amigal. Obviously GSK sees something that Shire did not.