Then you should have shorted ABBV. If the best the stock can do is gain a dime on low volume, any serious discounting vis a vis Harvoni is going to tank that stock more. ABBV has mediocre earnings growth so the will think twice about being too aggressive with the price.
RBC’s Michael Yee likes Gilead Sciences (GILD) decision to license Ono’s early-stage oral-cancer drug. He explains why:
We are positive on the Gilead in-licensing of ONO’s Phase I BTK oral cancer drug. This drug is very “similar” to Pharmacyclics’ (PCYC) ibrutinib ($5-6B consensus peak sales), and has similarly high response rates and clean safety in Phase I (email us for the Phase I slides…). We’ve written on this ONO drug many times. In our last note on Gilead (Will be looking for cancer deals in 2015…, 12/15) we said Gilead and its new oncology division head should start by in-licensing the ONO drug and indeed today we believe that makes excellent sense because: 1) Gilead has significant financial resources to run many studies in chronic lymphocytic leukemia, diffuse large B-cell lymphoma, indolent non-Hodgkin’s lymphoma and Gilead could get some of that share in the future albeit a few years behind; 2) there could be synergistic or additive efficacy by combining Gilead’s CLL drug Zydelig to ONO’s BTK and make a single “combo”; 3) consensus has little to no cancer sales in future estimates so ONO’s BTK drug could start to give some confidence to Gilead long term; 4) we predict Gilead will do more cancer deals…and this is smart as it has resources and capabilities to go after a rapidly evolving and growing but important immuno-oncology field…we think Gilead grinds higher…
Yeah, let's apologize to a psycho-tyrant who is starving millions of his own people to death in order to feed and clothe and pamper a million man army and make atomic bombs.
You have interest publicly expressed by Ali Baba and Wanda and deals with CBS and other big outfits. As far as I'm concerned that puts it in play. The price moves up and down for all sorts of reasons.
It is perplexing. Personally I think the floor is in at $34. If we can close over $35.75 one of these days we could get a meaningful run to $40.
Yes indeed. Stuff like NBC Nightly News and Face the Nation are toast. Headed for extinction like the dinosaurs they are.
Good points outlaw. Only companies already in the production business could achieve synergies. A minority stake as you suggest would remain just that anyway or you scare away the talent that doesn't care for Chinese cooking!
When it comes to takeovers, this is good news and bad news. OTOneH, a suitor can feel secure in knowing that they are paying for efficiency and value without having to write off a lot of fat. OTOtherH, a suitor can't generate a lot of cost savings to quickly increase earnings nor re-mold the acquisition in its own image and philosophy.