RE:RE:RE:News
The war on biotech continues. Looks like Pozen's negotiators for Vimovo royalties were smart enough (or lucked into) protecting themsevles against any regulatory changes in pricing as Pozen receives a fixed floor amount.
Aralez might do themselves a favor by not getting too greedy on Yosprala pricing as to protect themselves against any regulatory changes made to the Prescriptions Made Easy program. Like with Horizon, earnings will fly high enough to lead to a huge stock pop, only to crash down (like Horizon) at the first hint of further regulation.
Assuming the merger goes through, keep a close eye on the initial pricing of Yosprala. If they get too greedy, I might wait for approval to take my exit point on this equity. If they keep the price reasonable, they should insulate themselves
against kneejerk regulatory changes.
Horizon, Concordia, Valeant, they are all looking damned tempting right now, but all it takes is some stupid senator to propose a bill to neuter Prescriptions Made Easy, and watch their value tumble hard overnight. Much too much risk for me, but then again this is why the price is where it is. As for Tribute, I again question their eagerness to play this game with regulators when they have a nice oganically driven business going with lots of reasonably priced Canadian drugs. If this merger falls through, TRX will be trading at $1.70 in no time, in my opinion.