Valeant buyout?? Within the next month I would guess, G/ W will send out a circular that outlines all of their intentions. There is a strong possibility it could be a Valeant all cash, or cash and stock offer for the company. We may need to make a decision sooner than you think. Wells was the CEO of half of the largest merger in Canadian Biotech history and has very close ties to Valeant. Valeant has virtually no R and D and all their revenue comes from acquisitions.
Valeant's last acquisition Obagi Pharmceuticals (420mm all cash) was engaged in a proxy fight based on mismanagement and failings of the BOD right before the acquisition. Hmmmm.
What better partnership could there be than Valeant with a billion in cash (23B market cap) looking for a pipeline and Bioniche with a huge pipeline and no cash. We better start to think seriously as a group, what price we will accept for our shares.
Lets consider this. We are probably just had our first 10mm quarter ever. We find out May 8th. We could be on pace for close to 40mm this year. A normal acquirer would pay around 3 to 4 x revenue to buy a company. That is $1.20 - $1.60 / share for Animal alone.
We also have an asset in Urocidin that is worth at least $140mm. I don't know if an acquirer while taking on all the 3b trial risks and costs would pay that much. Perhaps $1.20 cash.
MCC human (Including Oncocidin) has some value .25 to .50.
I have no idea whatsoever is there is any value in Bioniche One health. With GMP validation the plant is worth something to a vaccine manufacturer. I was told by someone smarter than I, around .50 to .80 with GMP. Econiche you could probably sell it to someone in Australia perhaps the Canadian government for .05 to .10. Who knows.
We have a another plant in Kansas and a GMP plant in Point Claire and land worth .05 (no idea)
I think a farm in Australia and another in Ontario.
Head office is such a specific building for a health manufacturing company .10 maybe.
Accounts receivable is probably .05.
I would guess an independent appraiser would come in around $3.00 to $3.75 minus debt of .48. It doesn't mean they would offer that. We have to decide what our walk away price is. I would say personally I would need at least $2.50 to hand over my shares. Please share your thoughts. Get ready.
beech