If after the FDA meeting, Braeburn is confident of approval, an acquisition of Titan at $3 makes sense.
$3 per share would be about $300M. Braeburn would no longer have to pay Titan a $50M milestone upon approval nor the potential $165M of sales and regulatory milestones. So the net acquisition price would be between $85M and $250M. Braeburn would also no longer have to pay Titan a double digit royalty.
On $300M of Probuphine sales and a 50% profit margin, Braeburn would recoup its acquisition cost in less than a year. The profit in all the other years would be gravy. Braeburn would also be getting the pain and Parkinson's indications for free. It could be a massive windfall for Braeburn.
Are Sunil and Rubin smart enough to negotiate a good deal for shareholders?
As a long time share holder of Titan why would I accept a buy out of $3 especially after the FDA meeting where Braeburn is confident of approval. Why would Titan just give away the company? This makes ZERO sense.
Sentiment: Strong Buy
If Braeburn was willing to risk over $100 million before, why would've they buy Titan on the open market for half that amount given the technology? No need for a buyout, which would have to include something for inept Titan Management. Such a buyout through accumulation would be very god for Titan shareholders in the long run. The biggest obstacle: Titan Management!
This has been discussed before. If they buy shares on the open market and accumulate 5% or more, they would have to disclosed that in SEC documents right? Once that news get out, that will drive the price up as buyers will be piling on.
$3/shares is to high for this company. A fair market value is between $1.5-$2. Eitherway, owning TTNP at .45 puts the stock currently undervalue with either acquisition or new NDA.
I wouldn't be surprised of a Braeburn acquisition. I am sure they have had a strategy in place in the event of a CRL. The did a lot of due diligence up front and they would have crafted "what-if" scenarios and strategies prior to writing up a contract with Titan.