....Some analysts are skeptical of the Trius deal.
Tedizolid will likely face generic competition right from the start. Jefferies analyst Eun Yang wrote in a note : "the acquisition of Trius Therapeutics is perplexing. With the main competitor (Zyvox) going generic in 2015/2016, we see little value in TSRX's tedizolid.".....
I had never heard this view expressed before. I thought TED was the bomb.
Would you be able to answer my question. I have purchased sept. $12.50 call option. Currently, I'm in the money. In the recent headline, Cubist is announcing the expiration of the acquisition http://finance.yahoo.com/news/cubist-announces-expiration-hart-scott-200000884.html
What do you think will happen with the acquisition and if I should cash out on my position. Do you think the stock is going to move above it's current market value? Any recommendation is greatly appreciated.
They are probably trading where the shares are, I exercised my calls, because they don't give any value to the CVR's. I had December calls and don't want to be holding an option if the shares are gone in the deal. I will take a chance that I get the CVR for pennies at current share price.
That Jefferies analyst may not be very bright. I might stay away from any of his other nuggets of wisdom. Maybe he should read this article? http://seekingalpha.com/article/966761-pfizer-and-teva-settlement-on-generic-zyvox-a-significant-positive-for-trius-therapeutics
Anyway, if TED can get into the market quicker with the help of Cubist's marketing and commercial teams, it will have plenty of time to establish it's superiority and even with low cost generic Zyvox around, TED handles more conditions and potentially gets people out of the hospital beds faster.