There is a reason for HZNP to be at this level.
Investors are waiting for any bad news and they probably know that some bad news are hidden and can be released at any time.
Are you kidding me? TW wanted DEPO so bad that he was going to do everything possible to get it. Here is a company with better products, more revenue and almost no debt and at least $1 cheaper with 3 products in phase III and a few more in other phases. In addition it is company with international reach.
If HZNP goes after ACOR, then HZNP price will jump over $20 right away.
Offer ACOR $2B with all HZNP shares. It will be around 130m shares.
ACOR will add more revenue to HZNP than DEPO but also, ACOR has cash and very small debt (positive cash - debt). But ACOR has 3 products in phase III which will put HZNP in category of big pharmas with huge development.
I think DEPO will do well. Now, the market cap is so low that is trading below Nucynta price.
Lets shave off $100m early next month while accumulate more cash. Time is in favor of DEPO without price gouging and other problems that the sector is facing.
ACOR is another stock that I am holding with 3 drugs in phase III and positive income and cash minus debt.
HZNP is facing several lawsuit and it may lose money in this process.
DEPO is suing Purdue for millions, it may be hundreds of million.
So, between HZNP and DEPO, which is better?
I am holding ACOR, SCMP, HZNP and DEPO.
Why are you wasting your time here.
That 14.9% is less than 2k of ACOR.
NeurogesX is one single penny per share and soon becomes zero per share.
M&A is good for sector.
DEPO can claim millions for damages. I think $200m to $500m is possible unless Purdue buys DEPO at $40 per share.
Many companies have been challenged with their drug patents. If any bozo changes those patents then there will be lawless drug system.
VRX, ENDP and MNK are too risky.
HZNP should have go after ACOR or even SCMP instead of DEPO.
ACOR revenue matches DEPO but ACOR has only 44m shares with positive cash minus debt. That puts ACOR at very low market cap. Plus ACOR has been putting 40% of its revenue in R&D and 3 drugs in phase III and still it is making money.
ACOR business model is like GILD without selling drugs at high prices. Its Ampera has orphan drug designation too. ACOR is acquiring an European company with a lot of potential at $365m cash which will adds a few drugs plus a promising drug in phase III.
1- ACOR patent challenges is going well for ACOR and the hedge fund just wants to mud the waters and so it can fish.
2- Ampyra has orphan drug designation and it is untouchable until mid 2017. Only one patent is challenges and ACOR will win it or settle it as it did with other companies.
3- ACOR revenue and income are rising and cash flow is more than enough to fund its development.
4- ACOR has 3 drugs in phase III and it has spent a lot of money, about 40% of its revenue for drug development.
5- ACOR has a clean balance sheet and its cash exceeds its debt currently.
6- ACOR is acquiring Biotie which adds am approved drug and one promising drug in phase III.
7- ACOR share outstanding is very low which leads to low market cap. It should trade much higher than current prices to be comparable to other small caps even after recent discount for most biotechs.
Sentiment: Strong Buy
Hedge fund investor Kyle Bass formed Coalition for Affordable Drugs (CFAD), which challenges several patents filed with the USPTO. The CFAD has challenged patents of several pharma companies including Celgene Corporation (NASDAQ: CELG), Jazz Pharmaceuticals plc (NASDAQ: JAZZ) and Acorda Therapeutics Inc (NASDAQ: ACOR).
So, this is a new trend to challenge some of drugs patent but most will be denied.
IPR is a procedure for challenging the validity of a U.S. patent before the United States Patent and Trademark Office (USPTO).
When DEPO pays down $100m on Apr 4th then it saves $2.6m per quarter equal to 4 pennies per quarter of income or 16 pennies per year. Good move. It adds up little by little.