Post by
plantrader on Jan 31, 2023 1:27pm
JV vs Buyout
If the co enters into a JV, what does that mean for the prospects of a future buyout? Does it mean the buyout can only occur with the same company that entered into the JV? I assume that would be part of the terms of a JV, nobody else has a shot at buying Theralase out? Is this considered a limiting factor in such a way that a JV isn't always best for maximixing buyout/$$ potential?
I realize the company needs the funding that comes along with a JV, regardless, and possibly the expertise and sway with the FDA as well. Just trying to understand some of the limitations that a JV might introduce.
Comment by
ggrellette on Jan 31, 2023 3:01pm
When a JV occurs there are conditions in the agreement. The JV partner will have to right to match any offers should a buyout be offered. This would certainly be one of the conditions.
Comment by
plantrader on Jan 31, 2023 3:18pm
@ggrel, Thanks for the info. Sounds like that means a JV with one big pharma doesn't usually prevent other big pharma from being able to make a buyout offer. That's mainly what I was wondering about. Good to know.
Comment by
Yajne on Jan 31, 2023 7:15pm
I tend to agree with ggrellette...the clause in often referred to as 'most favored nations clause' which gives the right to match any offer.
Comment by
Legit62 on Jan 31, 2023 7:32pm
This sounds like there very well could be a bidding war amongst the big boys, and we will be on winning end, our time is getting near , February here tomorrow and soon Roger will be back
Comment by
Legit62 on Jan 31, 2023 7:34pm
Look back into all the shares he and insiders got recently, lot of their own funds spent, for a reason of course
Comment by
ScienceFirst on Jan 31, 2023 5:16pm
No. Many biotechs have deals with different big pharmas before being taken over by a big pharma. It can only be positive and even start a bidding war as more big pharmas can realize how good is the scientific platform.