Always happens whenever a stock has a huge leap, makes these boards useless....just read a PR about the deal, we jumped 40% today (up to $3.62, big whoop, I'm still down 60%!):
"Brean Murray Carret says the sale removes a "financing overhang" for the company as it was "clearly not receiving the value it deserved" for its Treximet royalty previously. Still, the firm reduces its price target to $7 from $9 as a result of the pushout of profitability due to the loss of the Treximet royalty stream."
Guess we can never catch a break....pps almost doubles but our price target gets whacked.
They did a great job with this transaction. The best part is that they're also slowing the burn.
I'm just thinking out loud but with $3.80 in cash they could now look into being sold to AstraZeneca for perhaps $8.00-$10.00. European sales for Vimovo are really moving so AZ could become very interested. Also, PA32540 isn't yet partnered and AZ looked into getting approval for their own aspirin/PPI combo at one time. It was lower dose and didn't get approval in the US. This could be a great fit for them.