Biotech Valuation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation

CRSP 52.40

-1.5%

Dec 31 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Harold Engstrom who wrote (8807)	7/11/2003 2:02:37 PM
From: Biomaven	Read Replies (1) of 52153

Harold, I assume you mean the SEPR redemption? This was first announced a month or so ago, and so it isn't really news. Bottom line is that SEPR could easily replace the bonds by lower coupon ones if they wanted to, and so it doesn't make sense for them to keep paying a higher rate. It's also an expression of confidence on their part. I don't know if they will wait for Estorra approval before going to the convert market again - that would be my guess, because an offering by them now would undermine their profitability forecast. Basically there is practically free money out there in the convert market - and it is logical that biotechs are taking advantage of it because they have good use for the money. (Not just increasing overcapacity or paying off pension deficits like much of the rest of the industrial sector). Altogether this low interest rate environment is very good for biotechs - reduces the discount rate used for present-valuing long term projects and provides cheap cash now to boot. Peter

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next