Sanofi and Genzyme spent months negotiating price of CVRs to augment the $74 per share that Sanofi offered to buy the company. The maximum value of the CVRs that was finally negotiated - if Genzyme's Lemtrada is approved for MS and if, the drug meets its hefty sales milestones before 2020 - amounted to $14 per share.
So what are they trading for now on the Nasdaq exchange? $2.30-$2.35 per share. Analysts say the deep discount reflects the long time-frame and risks associated with Lemtrada hitting its approval and sales targets. See Reuters.
So after all the drama in negotiation, sell it for 16.7% of maximum value I always say.
Posted by Bruce Lehr April 4th 2011.