|
Post by tw12 on Feb 25, 2019 16:46:38 GMT -5
www.barrons.com/articles/spark-therapeutics-roche-buyout-51551117025The second half of the article: Drug trial success is the other path to biotech stock riches. Earlier this month, MacroGenics ’ (MGNX) shares shot up 150% in one day on news of positive trial results for its new breast cancer treatment. The stock has given back some of those gains, falling 20% in the past three weeks.
Mergers are a way for biotech investors to lock in gains in a business where nothing is guaranteed.
MannKind (MNKD) , the California biotech now worth $250 million, has struggled to grain traction for its diabetic and pulmonary arterial hypertension treatments. In 2014, the company had a market value of around $2.5 billion.
That cautionary tale is a good reason for Spark investors to take their winnings and cash out. With shares trading just a hair below Roche’s deal price, further upside is limited barring a larger bid from another big pharma company. But at such a hefty premium already, it’s hard to see that happening.
|
|
|
Post by mnkdfann on Feb 25, 2019 16:50:48 GMT -5
So, MNKD mentioned, but not in a positive way.
|
|
|
Post by sportsrancho on Feb 25, 2019 18:44:49 GMT -5
Very good advice if you ask me, and that’s what we should be worth right now.
|
|