With Shire tied up with baxalta and Valeant going down the tubes. It really decreases the odds of a buyout. This allows shorts to really mess with the stock. There is no fear. However At some point value overwhelms and I think that point is here, so I bought back in today. Company has the goods, I could see a partnership now as a opposed to a buyout.
Docs are visited all the time by reps and usually just space out. Like oh here go another statin or BP med etc. But in this space all docs will read and reread the literature. This will definitely get early attention.
The main reason is the lack of new drug in 50 years. MD's like a little diversity, this is the only excitement in this particular space in quite a while. Sometimes MD's do a little independent research on their own. Try it out on a few select patients and see how it goes. I think this testing period starts early as MDs are very curious to try out this toy. We may be surprised by the earlier uptake compared to other new drugs.
Typically when a company is reaching out to banks they are really in the mood to sell and deals happen in a few months.
Companies pay what the company is worth. It doesn't matter what the stock price is the day before. But yes usually some news is leaked and price gets a little closer. This will get into 30's soon then we will hear about more serious buyouts or them hiring GS and it will approach forty and then if someone buys before sales ramp up it will be sold for 70 bucks. My guess based on how these thing have gone in past.
Uptake of new drugs is usually very slow. I owned PCRX from the start of exparel. When they started showing big increases month to month. The stock went pretty nuts.
65 dollar offer has been made. of course this is twitter and it is chatter. explains pop a little today. nice comment about no tie up with SNY. THat is big and CEO said very casually "if someone was to acquire the company". IT didn't sound at all like we was married to this thing.
Merck will buy Idenix Pharmaceuticals for $3.85 billion, bolstering its ability to compete in the growing market for hepatitis C drugs, the companies said Monday.
Merck will pay $24.50 a share in cash. The transaction has been approved by the boards of both companies.
News of the deal sent Idenix shares soaring 229% — $16.56 — to close at $23.79.
So Merck apparently doesn't mind paying a large premium. Anyone still feel comfortable shorting this?