Replies to post #113221 on Biotech Values

[DragonBits]

This TEVA / MNTA is pretty interesting. My own guess is that some hedge funds knew yesterday that a letter was coming, and letters are usually bad.

Thus a lot of calls were bought yesterday and the early AM spike up. But after reading the letter, it wasn't so bad so they got out of the longs.

Or maybe the market is just nuts.

I wonder if shorts increased of they covered a bundle today? I would have to guess they covered a bunch.

[DewDiligence]

My guess is that GILD’s problem with the Btripla NDA is clerical and not consequential. It could be as simple as GILD’s not following the proper procedure to incorporate JNJ’s TMC278 NDA by reference.

[DewDiligence]

The reason for GILD’s RTF letter on Btripla was inadequate stability testing on emtricitabine. (Source: GILD’s 4Q10 CC)