Replies to post #134572 on Biotech Values

[DewDiligence]

On the whole, McMinn has been quite bullish on the prospects for INHX and IDIX.

[oc631]

Bristol-Meyers must have long back started doing their homework while such analysts have been clueless.

I was sure this type of deal would happen before the failure of PSI-938. After the failure of 938 I assumed large pharma would sit back and wait for the PK safety data on INX-189 which was a mistake considering the scarcity value in the nuke class. What I suspect BMY has done is written an escape clause into the contract which makes the deal contingent upon the safety of INX-189. That sounds boilerplate but it's a real big issue for this drug. Will BMY be satisfied with only the PK data or will safety testing of higher therapeutic doses be required before closing the deal?

If I owned the stock and and the terms of the deal weren't made public by the time the market opens Monday morning I would sell the news.

On a side note: Interesting how BMY waited for anti-trust clearance of GILD/VRUS before sealing the deal.