If you remember when Sanofi was in process of acquiring Genzyme a few years ago, the end game in pricing the deal came down to how Genzyme's MS drug Lemtrada should be valued. A deal was struck where CVRs were created for Lemtrada and they could be worth up to $14 a share as certain milestones were met. Well...........it seems that while the EU approved Lemtrada that the US FDA will not without significantly more work in the clinic. That means several more years of trials and expense. Ooops!
So those Lemtrada shares you were holding hoping to get close to that $14 valuation? Well, they are worth $0.25 per share today. That's almost toilet paper value. See Fierce Biotech.
Posted by Bruce Lehr Jan 2nd 2014.