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Biotech / Medical : 2011 Biotech Charity Contest -- Ignore unavailable to you. Want to Upgrade?


To: ghmm who wrote (148)2/6/2011 12:34:20 AM
From: technetium  Read Replies (2) | Respond to of 400
 
How is CVR value calculated? How are shareholders paid?

"The CVR is a tradable instrument, which promises a payout to shareholders over time based on the performance of Genzyme's experimental drug Lemtrada for multiple sclerosis.

"It is not possible to pin down what the CVR will begin to trade at, but assuming it trades for $2 a share -- a reasonable estimate since many of Genzyme's shareholders are short-term investors who will want to sell immediately..."

[url]http://www.reuters.com/article/2011/02/06/genzyme-sanofi-idUSN0512013320110206[/url]

Disclaimer: I don't own any GENZ, but it's in my charity portfolio.

P.S., How would Bulba factor in a CVR [contingent value right] when reallocating my picks? For simplicity, ignoring the CVR is fine by me, unless there is an immediate obvious way to place a value on it.