Straight Big Pharma Buy-Out10 Feb 2019 07:12
Interesting one for me. If I were going to buy MTFB (once approved), with a view to taking Iclaprim to market, then I would put an offer in without delay. The quicker they do it, the lower the offer they will get away with. By that I mean this. If I am the CEO and I am looking at a company with a share price of, let’s say, 55p, then I am likely to get an offer of £1.20p approved by its Board (who represent all shareholders and are obliged by law, to accept it, if it is in their best interests - even if they don’t want to). However, if I delay and the share price has then risen to say 80p, for example, then I would need to be offering maybe more like £1.75p. Both are small money for a large Pharma, but equally, they are successful because they don’t go round throwing their money away needlessly! The above is in no way ‘loaded’ (ramping) as you will all know by now, that I write ‘what I think’ which is rarely ‘what I actually want (I really don’t like rampers myself)!! Just my thoughts of course, but the longer it goes without an offer then again, in my opinion, an offer is not likely and a Partner agreement much more likely/hoped for by the Board. Failing both of the above, then it’s recruiting our own Sales force, which means sales will take a long time to achieve and therefore damage upside on the share price time wise ......