Historian, as FUD has documented, after seeing this "buyout", WHAT does that mean Insmed is worth? How could the market so UNDERVALUE IDIX? Here we sit at $12.91 and we are viewed as a "failed primary PH II" company. NTM has no approved treatment and is only getting to be a more prolific disease. At least IDIX has $205M cash on hand LOL
for IDIX? Here are some tidbits (probably tainted but still):
"based on the data and facts we have in front of us right now, this might be one of the worst deals I've ever seen. Now understand that Idenix could deliver on samatasvir, its NS5A inhibitor, or its two other nucleotide prodrugs (IDX21437 and IDX21459), which would make this deal very much worth Merck's while. However, historically speaking, Idenix has one of the worst track records among all biotechs.
In 2010, Idenix had its then-lead compounds IDX184 and IDX320 placed on clinical hold by the Food and Drug Administration. Following this hold IDX184 continued on while IDX320 wound up be discontinued. In 2012, IDX184 was placed on clinical hold a second time along with IDX19368 following the death of a patient in Bristol-Myers Squibb's (NYSE: BMY ) study involving BMS-986094 (the drug it acquired when it bought Inhibitex). Because Idenix's investigational drugs worked along the same pathway as Bristol's, the FDA decided to exercise caution. Long story short, both IDX184 and IDX19368 would be scrapped shortly thereafter. Finally, last year the FDA placed a clinical hold on IDX20963 until it delivered preclinical safety data to the regulatory agency. That's four clinical holds in four years folks (or five if you count IDX184 twice), aptly giving it the name of the "most unlucky biotech in the world" according to Foolish biotech specialist Brian Orelli."
JMP had IDIX at a PT of $3 as of 1/30/14. They have a $25 PT for INSM (unless something changed last week). Merck values IDIX at $24/shr. What is WRONG with this picture? IDIX just went over $7/shr last Friday after languishing in the $6's. So, the market says IDIX was only worth $1.1B and Merck says $3.85B (or thereabouts). Miffed as usual.
The fact is IDIX was at $7.23 ($100M+ market cap) on Friday. Analysts had its PT at $5.80 and a few had a strong Sell on the stock. Yet, Merck thought $24/shr was a good deal. What this tells me is the "market" has many Biotechs (like IDIX, ECYT etc.) undervalued after the slaughter these past few months. For ECYT to be trading at $24/shr it would only have a $1B market cap.
So you think Merck paid too much for Idenix since it was valued by the market at $7.25 (or so) and a $1.1M market cap? The Analysts set a one year PT of $5.80, which it had already exceeded. I think the market undervalued that company and has done "harm" to others with an even better potential. Unless you believe Merck is just plain Stupid!
If they offered $1B, they would get back over $200K in cash and eliminate any further incentive payments so you would think this would be obvious. They can own Everything for almost no cost in the end. Don't forget the carried over losses that would minimize taxes on revenue for some time.
You know Kinkey, those options @ 12.48 issued a few days ago may have set the bottom PPS here because IF they felt the PPS would go down further - why not wait???? So far - so good
On May 18-20, Insmed provided more positive supporting data on both NTM and CF yet the PPS is $12.26:
May 14, 2014 15.16 15.80 14.78 14.83 457,400 14.83
May 13, 2014 15.61 15.91 14.92 15.26 543,700 15.26
May 12, 2014 14.49 15.85 14.47 15.73 809,200 15.73
May 09, 2014 13.75 14.53 13.19 14.46 474,500 14.46 (see below's PR)
May 08, 2014 13.78 15.32 13.68 13.71 927,800 13.71
Insmed Incorporated (INSM)
May 09, 2014
Chief Pulse Comment by William H Lewis
MONMOUTH JUNCTION, NJ ( Marketwired , May 08, 2014) , Insmed Incorporated ( NASDAQ: INSM ) today reported financial results for the three months ended March 31, 2014. Highlights of the first quarter of 2014 and recent weeks include: Announced top line clinical results from a phase 2 clinical study of ARIKAYCE™, or liposomal amikacin for inhalation, for the treatment of patients with treatment resistant nontuberculous mycobacterial ( NTM) lung infections;
Applied for Breakthrough Therapy Designation in the United States for ARIKAYCE to treat NTM lung infections; Reported positive interim data from the two year, open label extension study of ARIKAYCE to treat Pseudomonas aeruginosa infections in cystic fibrosis ( CF) patients, which demonstrated long term safety and durability of effect at 12 months;
Entered into a contract manufacturing agreement with Therapure Biopharma Inc for the manufacture of ARIKAYCE; and Received Orphan Medical Product Designation in the European Union for ARIKAYCE to treat lung infections caused by NTM. "We remain on track to discuss our recent clinical results with the U. S. Food and Drug Administration and the European Medicines Agency to determine next steps for ARIKAYCE," said Will Lewis, President and Chief Executive Officer of Insmed.
"We look forward to the presentations of ARIKAYCE data at the American Thoracic Society's Annual Meeting later this month. The presentation of the NTM data will include data from the three month, open label portion of the study."
Kinkey, wasn't you who said Insmed attended this already? Guess not this year.
We should see something (a PR) from Insmed stating they will attend/present as they have attended at least the past 3 years:
JMP Securities presents its annual healthcare industry conference, an institutional investor
forum featuring approximately 120 publicly traded and privately held companies in the
areas of biotechnology, specialty pharmaceuticals, medical devices and diagnostics.
Tuesday, June 24, and Wednesday, June 25, 2014
The Westin New York Grand Central
212 East 42nd Street, New York, NY 10017
Citigroup Initiates Coverage on Endocyte, Inc. at Neutral, Announces $8.00 PT
Read more: http://www.benzinga.com/news/14/06/4611244/citigroup-initiates-coverage-on-endocyte-inc-at-neutral-announces-8-00-pt#ixzz33lQNqaqm
Hey Fake Kevin, I do not let FUD use my ID nor would jad or b_l so why are you posting such crapola? And FUD would never delete a BWD post.
Hey Terry, what about Dr Wade's call on ECYT? He has a $65 PT and listed it on their "best ideas" stock list. The jury is still out on INSM but Wade was pushed out the door.
are these 2 new?
Job Title Department Location
Director, Clinical Development Clinical Bridgewater, NJ
-◾Collaborate on the development of selected compounds on the implementation of strategies to achieve key objectives and milestones.
◾Assist with clinical development planning and oversee trial design and protocol development to achieve optimal speed, quality and economy for the lead programs spanning preclinical through Phase IV include managing activities of clinical research organizations or CROs.
◾In cooperation with regulatory co-workers, represent and manage the company’s clinical programs to regulatory authorities and corporate partners lead the preparation of the clinical sections of Regulatory filings.
Program (Project) Manager - Technical Operations Finance Monmouth Junction, NJ
Reporting to the Senior Director of Program Management, this position will be accountable for all necessary project planning, scheduling, tracking, managing and project direction required for the successful and timely completion of projects within Technical Operations including:
◾Supply Chain development
◾Preparation of regulatory documents
◾CMO re-engineering projects
Blasé, I don't think anyone here (that have some form of intellect) would disagree with spending money to make money. What this reaction is for unnecessary/untimely dilution and now the market has it in their CRAW (again). IF there is some good PR that will push the PPS back up to $16-$18 then maybe that is the time AND less shares needed to get $60M or so. All this "doubt" and uncertainty needs to be reduced so we can move on to commercialization and people sleep at night (LOL). thx
Terry - that you? Actually it was $12.29. Sad that you revel in this suppression while the science is looking quite good. Try another ID "evelyn".
Let us not forget the San Diego conferences and the negative culture conversions of 21/68 patients. That data seems to have been completely ignored.