(This is a post of mine copied from Yahoo)
Re: Didn't anyone like the news???
The gap up and fade is disconcerting. I vowed
never to post on yahoo again, it is so godawful
over here, but with no responses over on SI,
what the hell: The only thing I can come up with
is that now Infinity shareholders do not need
DPI's cash, they could stay private and go for
an IPO at a later time.
Obviously the deal is very good, the $35M for
each program is not huge, but splitting costs
and going 50/50 seems to me a great partnership.
Infinity could have handed everything over to an
Amgen or a Novartis for a lousy 10 or 15%
royalty, but this is a much sweeter deal.
I suppose, as one fellow pointed out, the
valuation is not so far off right here. 100M
for dpii is something on the order of 300M for
newco, and that will be about twice cash, nothing
wrong with an IPO valuation which starts there
and trends up over the course of a year or two.
I expect INFI will have a marketcap of about 600M
within a couple years. That was their goal a few
years ago, these people are competent, no sweat.
Within five years, I don't see why this couldn't
be a 3-5 bagger. |
