Strange, below 130 now with a near term buyout in the upper 130's. The market rarely gives such a discount. Combine that with VRTX up $3 off of it's recent lows. Could be that 7977 maybe isn't quite the wonder drug it was hyped to be, or it could be random fluctuation. We'll see.
But I won't be surprised when that overhyped drug gets some bad news. It's rare that a medicine works as well as they claim. Combine that with the way that data is being presented picking and choosing. We'll see. I remain very skeptical of Pharmasset.
You are right on money about VRUS. Actually, if I were a "shorter," I would short VRUS now. I am not sure, but it won't surprise me if there is not an escape clause for GILD. And if bad news comes from VRUS's trials, and there is an escape clause, GILD may just dump VRUS and pay whatever amount of $ is required for dumping. In that case a short at these prices could become very rich whereas if the deal is concluded, the loss is only about $8 per share.
I read somewhere that there is a 3 percent fee if GILD backs out of the deal. So I guess it might cost GILD about 330 million. Of course, not backing out could cost them several billion if PSI-7977 does not live up to the hype.