Miljenko,
What is your take on today's news about the breakup of NXTR into
two separate companies? [One with the liposome products and the other for drug discovery, I assume.]
I view this development as being positive for shareholders, at least based on the current share price. After the breakup, the liposome part of the business will be worth $400M (based on the projected 1999 sale and the potential of MK drug), in my view. For the drug discovery part of the business, the specialty chemistry group (PASS) is valued at $75M, based on the recent deal with SKW (SKW spent $18M cash, 49% of a $10M plant, and potentially $20M in future payment for 51% of this business.) The biggest uncertainty for me to evaluate is the value of SELEC-related business. I am not sure if the Glaxo deal is the first one in a row, or the best deal that NXTR can ever get.
In any case, the breakup will be enough to drive short sellers to cover. On the downside, the breakup could make Pat and WP to sell their shares to the market.
Steven |
