There is some "noise" lately about talks of merger between QLTI and another company.
Beyond any speculation and rumour, let's examine just the FACTS:
QLTI has tried two times in the recent past to merger with other biotech companies. The competitors forced to pay a 70-100% premium to broke these deals and QLT received 30 million USD as broke up fees.
Jason Aryeh, QLT’s Chairman, stated when the deal with Auxillium canceled:
"The company would immediately re-engage its assessment of potential strategic options. Whether selling off QLT091001 and distributing cash to shareholders or simply merging/selling the company, we’re looking for an exit in the not-distant future".
The previous deals, those which where very good for QLTI, supports my belief that QLTI’s BoD will find a way to wind down the business in a favorable manner.
Of note, three size-able funds of QLTI, Axial Capital, Kingstown Capital, and Visium Capital entered into a voting agreement with Auxilium at the time of the merger, under which they committed to vote in favor of the planned transaction. Clearly, still QLTI big shareholders are in favor of an opportune exit and have the clout to make something happen if delays occur.
So, a merger or selling the company agreement is not just a possibility, but the priority of the management.
As for the price of a potential deal, the cash ($2.25/share in Q1) and the assets of QLTI (QLT091001 evaluated at $4/share) suggests a price with triple-digit per-cent gains for those who buys at the current share price. Even if we ignore the pipeline, then cash, other assets and tax benefits reach a $3/share at least.