Regarding the NEWS today; I get the feeling that....
EVEN IF the Partnered Drug had been MORPHINE, or ASPIRIN, these SHORTS would find SOME/ANY/ALL reasons to disparage it. I can imagine......
"You can't profit off of MORPHINE!!"
"How stupid that ANY would want ASPIRIN?!"
"MORPHINE has NO market!!"
WHAT HAPPENED to you guys when you were children??!!
Were your Duck waders ALWAYS knee high?!
Did you NEVER get high tops?!
Was you Mom 3'11 & your Dad 4'8?!
Did you HAVE a Munchkin Fetish?!
Did your wife ONLY wear mini skirts?!
Were your vacations ALWAYS weekend ONLY?!
Did your Dad ONLY give you Crew cuts?!
Did you NEVER take more than TWO LICKS on your Tootsie pop before you crunched it??!!
WHAT HAPPENED to you people!!??
I do NOT understand the mentality that sees ONLY the DOWN side, and I SURE don't want too.
As I see it; SVNT's "K" is a niche drug. They appear to be partnering with ANOTHER company that ALSO has a niche drug. Sure could be "desperate"; but ALSO could be what some folks call a NEW "business model".
You can call me the Idiot, but I do NOT see how the NEWS today can be seen as TERRIBLE.
For the record, I enjoy my Tootsie pops a LONG time!
It does seem to point to a partnership between the two where SVNT helps Sobi's Kineret in the US and Sobi helps SVNT's K in Sweeden (Europe?). Guess we just have to wait for the Conf Call to explain the business/financial terms of the deal.
Once again we find ourselves perlexed/frustrated why this week's news release on this so far has not generated much notice, volume or change in SP.
To me, a partnership or M&A or anything along those lines, require both companies to have something in which both sides can benefit. Both products and/or companies have to be very similar, and their products must be directly related either in technology or manufacturing process such that both companies can enjoy advantages to a partnership/merger/buyout.
To be honest, I can't see the direct correlation as to how Kineret directly complements savient's K. Of cos that's because I don't know much about Kineret. But from what I've read yesterday online, doesn't seem like some miracle that svnt badly needs. Gotta wait for some knowledgeable to add in his/her inputs (not pumpers or bashers).
But if you look at the volume yesterday from the release of the news, its as good as no news. No movement on volume, no movement on price. Big money isnt buying in or selling off, neither are retail investors. So it could be that we are reading too much into the news. I'm anticipating earnings and hope that CEO can finally deliver what he was hired for, and that will blow the shorts out of the water.
potential upside - if deal terms good enough, chance for some revenue with minimal ops cost added. If portfolio bigger, maybe retain better sales force.
potential downside (my bigger worry) - preparing for strategy of commercializing K and other drugs themselves when sales is not their A game. That revenue growth will not outpace cash burn.