Millennium Pharmaceuticals, Inc. (MLNM) 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 : Millennium Pharmaceuticals, Inc. (MLNM)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Icebrg	9/28/2006 5:34:56 AM
	of 3044

Millennium's AnorMED Buyout Seen As Risky Peter Kang, 09.27.06, 7:00 PM ET Prudential Equity Group expressed doubts on Wednesday regarding Millennium Pharmaceuticals recently announced takeover of AnorMED. On Tuesday, Millemmium (nasdaq: MLNM - news - people ) announced it will buy the Canadian biotech for $515 million in cash, or an offer of $12 per share. The bid trumped an unsolicited offer of $8.55 per share made by Genzyme (nasdaq: GENZ - news - people ) in late August, which was promptly and unanimously dismissed as a lowball offer by AnorMED's board of directors. Millennium is placing a big bet on AnorMED's experimental stem cell booster, Mozobil, currently in Phase III development. Prudential analyst Ron Ellis reiterated an "underweight" rating on Millennium shares on Wednesday. "We believed that Mozobil has the potential to reach $300 million in worldwide sales," he wrote in a client note. "However, we are less optimistic with the compound in the hands of Millennium." The analyst maintained a price target of $10 on the stock and said he had "reservations" regarding the company's ability to realize the full value of the Mozobil franchise. "We believe that the acquisition price is at the high end of the range and likely beyond reasonableness for Millennium," the analyst said. "While we credit management for opportunistic growth by acquisition, we find this 'swing for the fences' approach to be a high-risk strategy." forbes.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next