SI
SI
discoversearch

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 : Neurocrine Biosciences (NBIX)
NBIX 145.00+2.2%Dec 19 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: fred hayes who wrote (1612)6/24/2006 12:05:05 PM
From: Robohogs  Read Replies (1) of 1834
 
There is another weird way to look at. If PFE knows there is too much work to be done, and given the economics, they lose money selling only IR (the royalties to DOVP and NBIX, supporting the new clinicals AND supporting NBIX's salesforce (which I never understood)), and they therefore knew they were pulling out, AND they do not want to buy SEPR but know one of the competitors is going to do so, their pulling out raises the cost (in a multi-party bidding situation) given the improved fundamentals of SEPR.

Strange - their pulling out raises value of SEPR in the market's eyes. Except, someone wanting sleep, and only sleep (and not patent challenged respiratory), might do a different style deal with NBIX (except for the noise PFE raised there) which can make money on much worse terms to NBIX (i.e., we will give you $200 MM and a small royalty and NO salesforce and a milestone payment if MR approved). So this would decrease SEPR value. Weird game theory here.

Another way of thinking about this is that pulling out now does not help with SEPR. 180 days from Friday is basically the same as 180 days from next week (if that is when a bid was going to be announced) AND in delaying the cancellation, competitors in a bid situation would have been left confused and hence might have under-bid for SEPR handing it to PFE, who could use its superior knowledge of the playing field to raise its bid just enough to win. So this has the look of PFE not bidding for SEPR. Right?

Jon
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News