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Avanir Pharmaceuticals, Inc. Message Board

  • jeandoyon14 jeandoyon14 Feb 13, 2013 1:54 PM Flag

    SRK_Any reason they mention AVNR specifically for a buyout?

    thats very precise.

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    • vacationcharlie Feb 14, 2013 1:13 AM Flag

      Thoughts, Rayonman? Rim.job?

    • The news item was paraphrased from a report on ELN by RBC dated today.

      The subject was what will ELN do with their cash and NOLS.
      They gave 6 scenarios of which the 5th, mentioning AVNR, was deemed most likely.

      This is the relevant excerpt from the report:

      "• Scenario 5 - most likely: We could see ELN buy and roll up synergistic
      assets that could potentially include companies such as QCOR, ACOR and
      AVNR. Hypothetically, we could see $3.5B to $4.0B in acquisitions (while
      keeping the $600M of debt) drive a topline of $850M+ and also enable ELN
      to reduce operating costs by 50% ($500M currently). This scenario would
      better leverage its low corporate-tax structure (we see savings of ~$60M) and
      generate net income of ~$600M (or $1.00/share) while Tysabri royalties
      ($200M+) would cover base operating expenses and interest charges."

      Sentiment: Strong Buy