I would put that $400 million in the bank to work on science. I don't know enough about the CBMI project to endorse it, but it shows my sorta attitude.
On the other hand, Tobin et al. may know enough about OP-1 and anti-CD40L to predict $60/share within a few months, and may be taking advantage of a near-term op.
In general, I feel that this is the time to put money to work, diversifying efforts in the lab. Companies tend to put on "invented here" blinders, to become arrogant without trying. It's why AMGN has tripped. I'm afraid that a share buyback is an indication that Business Development at BGEN has grown ineffective. Heck, you can make big money off of a business plan to microwave prostates. Medium rare, please!
Or...... another thought that seems correct for today. There are TONS of small two-four (wo)man start-ups out there. A small venture capital fund, managed by someone close to the ground, would pay big-time right now. It would serve two purposes; it would put the money to work for relatively near-term returns, and it would bring BGEN into intimate contact with data that it would otherwise not see.
Makes me worry. I don't have an equity stake in BGEN (thus my clumsy glance at royalties), so I'm not worrying from the stand of a shareholder. However, I love the sector and hate to see our leading companies give up on relentless pursuit of innovation. Of course, the other side of the story is Chiron...... aggressive, without much taste. |
