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biotech_researcher

03/08/14 11:52 AM

#47615 RE: Whosetosay #47614

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biotech_researcher

03/08/14 11:52 AM

#47616 RE: Whosetosay #47614

2da, I do not measure value in a vacuum. For comparison, CLVS is an early stage biotech, with compounds in phase I trials and sports a $3 billion market cap.

Now, compared with Ariad which has one approved drug (noted, limited so far, for usage), one entering a pivotal trial for approval in the next 20 days, and another what I'll call "high profile" compound to be announced in the next 9 months, and has a market cap of $1.5 billion. I would be comfortable in valuing Ariad in a buyout at the CLVS valuation of $3 billion, or $16 per share. I fully expect Ariad will have Iclusig approved in 2nd line CML at some point in time, and that is the value proposition that some biotech firm will embrace. I think it will be a biotech firm that buys Ariad and not big pharma. It would be a better fit for Ariad. I also think it will happen soon, and Ariad will move into their state of the art new building.