they bought because OPK is buying BRLI for 2.75 shares of OPK. Right now that looks like a $5 premium at the current OPK price, 2.75 X $16.16 = $44.44. OPK has great potential, and the stock already took a $3 hit on the news of the deal. With many OPK shareholders selling their shares to buy BRLI, OPK now has a new base as well. Provided BRLI earnings are as expected, I think both stocks will firm up and move higher. IMHO.
A very large share of the float changed hands with the deal's announcements. Anyone who bought and held did so to take advantage of the aprox. $5 or so arbitrage that is built into the deal right now.
Looks like a $5 to $6 arbitrage premium built in at today's pre-market prices. A OPK/BRIL combo makes sense on so many levels. Dr. Frost is a proven winner, so BRIL shareholders will get to ride along with the good doctor. IMHO.
Knee jerk reaction seems to have been over done. The combined company seems like a great combo, with earnings and a very strong pipeline. It's a win/win!
But I am sure it doesn't bother him at all because he knows where this deal will take OPKO. I expect he will be buying as soon as possible. Shorts should cover on this gift because coming approvals and Bril acquisition will make OPKO very profitable very soon.
Frost wants BRIL to handle the roll out of their 4k score for prostate screening. If 4k is as good as they say, it should revolutionize the way doctors diagnose and treat prostate cancer. I think OPK dropped as much as it did because investors were selling OPK to buy BRIL. Both should do fine as OPK's pipeline is loaded. IMHO.
I sold some of my OPK and bought BRLI because I should get my OPK shares back and then some. That is if the deal goes through.
They plan on using it to help roll out 4k score and other diagnostic tests. The company is also profitable, so it will fit nicely into OPK's plans.
Reportedly paying 2.75 OPK shares for each BRIL share. Looks like a $5 difference right now. I sold a chunk of my OPK and bought BRIL. Looks like a good combination for both companies. Dr. Frost is very shrewd.
I totally agree. Long term, OPKO is more of a buy now than ever.
Smart move. 4K score is going to be huge. OPK will bounce back much sooner than anyone expects. IMHO.
I believe this will pay off handsomely in the long run. Today's dip should prove to be a buying opportunity if you are still on the sidelines. Time to comer if you are short. IMHO.
I invested in GLPW years back, and stopped in to see what was up. I am tempted to buy back in, but after reading the press release, I get the feeling that there could be more bad news to follow. The company does have value in a dynamic space, but if someone was cooking the books, how far does that go back? The press release seems to hint that there could be more bad news to follow. Good luck!