If this is settled in Idenix's favor (which it seems to be leaning that way based on reports), it would add $6 a share in royalties to IDIX. I'm starting to wonder if this is what's driving the heavy option positions and volume we saw over the past couple days.
Does anyone know when this is expected to be settled?
My understanding is that the court mandated that the two side hold settlement talks, so they will meet in June. However, this does not indicate that a settlement has been reached or will be reached soon.
IMO GILD may want to settle instead of dragging this out and Idenix could use the cash. A settlement with GILD on this issue will also clear up one of roadblocks for a buyout..
As for the price dropping, considering the big move - the drop today isn't that big deal..could just be traders exiting their trades from high 7s and taking profits before the long weekend