Trius Therapeutics. We first started covering Trius back in March of this year before Trius announced positive results of its Phase III trials in April of this year, which was named ESTABLISH-2. Results from the first phase III trial, ESTABLISH-1, were reported earlier this year. Trius has been one of our best small cap biotech investments, gaining nearly 200% since our first article in March. It's worth noting that merger and acquisition chatter is strong with Trius, and we believe it's a 70% chance the company will be acquired before the middle of next year.
If you were the one who wrote that SA article, thanks, I have made a bundle here (so far). I agree that it makes total sense for them to sell. Building out sales, marketing, managed markets, operations...is all very expensive, especially for an anti-biotic. If most of the sales are to hospitals, that's not as costly as selling to a PCP, but still a challenge. They have to get approval from the hospital P&T committee, this all takes time and slows a launch. Small biotech's are typically not good at launching a new product (see Zymegenetics). It makes more sense to sell, or partner with a firm that's already got this infrastructure in place and can leverage their fixed costs, talents and experience. I am sure management can afford to retire at $15+ or some can stay on and run a small division, or they can move on and start a new firm. That would be a win:win:win.
r u saying a buyer will wait till after FDA. Most longs here feel that given the company hasn't sought out a European partner that a buyout is in the works. My guess is this will take place earlier perhaps by Sept. Trius has 3 potential suitors, an enviable position for any expecting bride.