Silicon Investor (SI) -- The First Internet Community

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 : Novartis -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (116)	11/15/1997 12:07:00 AM
From: Valueman	Read Replies (2) \| Respond to of 296

Doug: High was 75 3/4, low was 74 on 225,600 volume. Close was at 75 3/8, but my screen still has a bid/ask of 74 13/16, 75 3/16. I bought Ciba-Geigy a few weeks before the announced merger because it was extremely undervalued relative to its pharmaceutical peers and it also had a big agricultural presence, which I wanted at that time. They also had a number of joint ventures with biotechs that looked interesting. The negatives were its not-so-impressive pipeline of new drugs and the fact that several drugs were coming off patent. But I jus couldn't pass up a bargain--this would have been at a merger adjusted Novartis price of 41. I was thrilled with the merger news. Sandoz had a better pipeline, and the cost savings would be tremendous. The headquarters were across the river from each other, which alleviated my fears of another Pharmacia-Upjohn disaster. Things are going great--merger benefits are flowing to the bottom line faster than expected. They have a huge pile of cash and a long list of biotech stakes. The pipeline now looks much healthier, as do all the other divisions' results. The merger took two so-so companies and made a global powerhouse.