GREY:ATBPF - Post by User
Comment by
WalkOverTheStrton Apr 07, 2021 10:36pm
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Post# 32954830
RE:RE:Steady as we go "Longs" ...
RE:RE:Steady as we go "Longs" ... Worth stating the below as some folks are naively throwing out some unrealistic buyout premiums (based off current pps) and don't see the connection why Antibe pps needs to eventually make up this value gap...
BoDs of the acquirer will not authorize an offer to be made that is many multiples of the current stock price. It just doesnt happen in the market and why these cases are rare ... search it historically and see the link below wherein 150% is on the high end.
No BoD in good conscious is going to "over pay" ie. make an 3x+ premium offer on a publicly traded asset that the market has not valued within the range. Let alone for Antibe at it's current price when it does not have a New Drug Application (approved) let alone passed PH3. The reach is too much and the BoD would be voted out for making such a risky and over valued offer... While we retail think the TAM and China deal reflect this potential valuation the street doesn't....
One way or another the value disconnect / gap needs to be lessoned. One way to do that is find institutions that see value in Antibe and who accumulate. Those buyers and that demand has not occurred. on the current exchanges. So either buys on these echanges step up / some positive news entices them or ? but to be clear a buyout of more than 2x premium is highly unlikely.
https://www.evaluate.com/vantage/articles/news/snippets/biotech-deal-premiums-still-punchy#:~:text=In%202020%20three%20R%26D%2Dstage,110%25%20and%20111%25%20respectively.
Premiums paid in 2019 for public companies reached an average of almost 100%, demonstrating the continued appetite for companies with new products in development or on the market.
https://hbmpartners.com/media/docs/industry-reports/HBM-Pharma-Biotech-M-A-Report-2020.pdf