Replies to post #134581 on Biotech Values

[mcbio]

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.

Given the scarcity value, you have to wonder if IDIX will be next. A big pharma could pick them up and easily run a Phase 2 trial large enough to address any safety questions with IDX184, assuming success of course.

[DewDiligence]

Excellent post, IMO, on multiple counts. I think you’re correct that: i) BMY has an out if INX-189 runs into safety problems before the deal closes; ii) the timing of the announcement was predicated on HSR clearance for GILD-VRUS; and iii) Monday will likely be a good shorting opportunity for some HCV names.