Because they currently own 70% of Indiplon. Pfizer will wait to see what the FDA decides before making a decision. The only way Pfizer backs out is if the FDA outright rejects 5, 10 and 15 mg tabs (which will absolutely not happen).
From a financial standpoint, if more trials are needed for the 15 mg, Pfizer only has to pay at most another $100-$200 million (chump change for Pfizer) for Indiplon 15 mg to be approved. So Pfizer can choose to buyout Sepracor for several billions, or just pay a couple hundred million and potentially have their own sleep drug within 1 year.
Trust me that Pfizer will wait to see the status of Indiplon before trying to buy out any other companies. It's just good business on their part.
"So, what's this company worth?
I say that it would/should be worth significantly more than $536 million, - probably worth about $two bill would be my guess, - but then what the hell do I know? - ask akram - he'll tell you "not much"!!
BTW, the company has about 300 million in accumulated deficit. Hey that NOL is worth something, isn't it? I don't think they can book the deferred asset until the drug is approved and selling.
Yeah we noticed that he tried to doctor the image but wasn't clever enough to cover all the tracks, not that anyone believes his crap anyway. He's probably red in the face now, perhaps a new ID is in order for him?
The numbers in that schedule is absolutly wrong. Just to give you an example, at the beginning it says that price is $14.32. That's OK. Then at the bottom in the "Valuation" section it says that Price/Book is 1.49. If price is $14.32 and Price/Book is 1.49, then Book Value is closer to $10.00.