Replies to post #171785 on Biotech Values

[oc631]

NVS could make a bid for IDIX to pursue opportunities in GT3 but I wouldn't expect a high premium over the company's existing valuation.

To say the IDIX pipeline hasn't been de-risked is an understatement.

[oc631]

I feel ENTA stock is severely mispriced after the sell-off last week. The data in treatment-experienced patients was excellent. Considering the 100M in cash on the balance sheet, no debt, and the forfeited 195M milestone payment upon approval, a 200% premium over the company's existing valuation would not be out of the question.

[DewDiligence]

Re: M&A 2014 predictions

I think I know where you are going with this so I'll beat you to the punch. After releasing the remaining Phase-3 data, and before filing the NDA, ABBV makes a very generous offer for ENTA. They bring the HCV combo solely in-house and adopt a pipeline of assets, which potentially could allow them to expand to other genotypes.

That wasn’t really what I was driving at, although ENTA might be a reasonable vote in the iHub survey under consideration.

As previously discussed, I don’t want ENTA to be acquired until at least August because I bought my most recent taxable-account shares in late July and I don’t want a large gain to be taxed at short-term rates. Moreover, I think ABBV and ENTA likely disagree about the value of ENTA’s HCV partnership with NVS, which makes agreement on a buyout price more challenging.