Normally, I would agree, but this goes beyond this deal. This is a validation of their platform by a fairly conservative big pharma. This should also open up the door for other pharma to follow. They also have approval for subcu Herceptin coming up in the next few months. They'll finally be able to book a profit on all of that inventory they have been building up. HALO's cellulite drug should have results very soon. In addition to that, their phase 2 pancreatic cancer drug will have results next year. They should start selling their insulin pumps next year. And then subcu MabThera at the end of the year. Cash flow positive by 2014. Gammagard could be a bonus too with FDA meeting by end of year.
they have had too many recent failures and too large a float for exuberance at this level, as volume subsides, so will price, and the pfizer deal looks sketchy, $8mm, 8 products and $507mm in future royalties, frost didnt sound convincing re 'the platform', with all the stock out, the company seems to be ringing its own register a lot, and there are a lot of old bagholders over $7 selling into the rally