Wow! I had been short this one a while back, fading the spike on the recent Vidaza data, on the premise that Dacogen should be able to equal it, since Dacogen is a prodrug of Vidaza. Though I closed my position for a quick and modest profit, I was eyeballing PHRM for another short try. Glad I didn't execute it!
I'm a bit mystified by this; seems to me CELG was doing fine on its own. I mean it's a good fit -- brings Thalomid entirely into CELG's fold, companies are in similar biz, blah, blah -- but what was wrong with things as they were? Is CELG overpaying for minor synergy advantages versus the current situation? I think so. If I was a CELG holder, I think I'd be pissed. Be interesting to watch CELG's share price next weak. Great deal for PHRM holders, though, congrats to any longs here.
Now if MOGN and MLNM merge, it would be interesting to watch the ensuing battle in the MDS space.
I see this is a cash and stock offer, so there may be an arb opportunity.
Cheers, Tuck |
