Replies to post #123691 on Biotech Values

[mcbio]

I respectfully disagree. Please examine the table entries in #msg-65401590. Do you see evidence that the buyout premium is higher when the deal value is lower and vice-versa?

I don’t see such a pattern. To the contrary, the entries in the table appear to be distributed randomly.

It's certainly not going to always be the case that there will a much larger percentage premium at a lower market cap level. It's going to depend on the specific facts and circumstances in each situation and the bargaining power of the acquired company. I just think, given ICGN's pre-existing partnership with PFE for the novel pain drug, and the sizeable market for this type of drug, warranted a better premium for ICGN. It doesn't matter what I think at this point, of course. And it wouldn't be any fun if we all agreed, of course. ; )