Replies to post #116916 on Biotech Values

[mcbio]

Thanks to DD and jq for the 1B/Shelf Info. I wouldn't expect a big premium if VRUS were taken over at this point (for that matter nor for ITMN). Just a guess but I would say in the ~20% range. For what its worth I think it would be a bit of risk still for someone to take over VRUS.

I agree that there's a bit of risk at this valuation. However, I'd be surprised if VRUS succumbed to just a ~20% buyout premium. Notwithstanding the risk, they have a nice cash hoard which really increases buyout leverage in their favor IMO. If someone really wants them, I imagine they'll have to pay more of a premium to get them.

[oc631]

I wouldn't expect a big premium if VRUS were taken over at this point (for that matter nor for ITMN). Just a guess but I would say in the ~20% range. For what its worth I think it would be a bit of risk still for someone to take over VRUS.

There are so many ways VRUS can leverage their assets and remain the leader in the space. I can assure you a 20% premium would not only be unacceptable to management and shareholders, but it would draw in competing bid(s), at much higher prices. I think it would be a bit of a risk not to pay top dollar and put the company into play.