One more for good measure...

One more for good measure :)
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Takeover talk splits opinion
Olga Galacho From: Herald Sun March 30, 2011 12:00AM

GIANT US pharmaceutical company Cephalon is continuing its raid of Australian biotechnology companies, with a tilt worth $225 million announced yesterday for leukaemia drug developer ChemGenex.

The offer of 70c a share was a 59 per cent premium to the company's last price before it came out of a trading halt yesterday morning.

By yesterday's close, the stock had soared more than 53 per cent to finish 23.5c higher at 67.5c.

Speaking from Chicago airport yesterday, chief executive Greg Collier hailed the bid as "the right thing for us and the right thing for patients" who are suffering from chronic myeloid leukaemia, but who do not respond to existing treatments because of a genetic mutation.

But analysts were divided about whether the deal represented good value.

Biotech Daily analyst Marc Sinatra, who valued the shares at $2.90 before the trading halt, said Cephalon would be getting a bargain.

"Dr Collier was issued with 4,578,667 options at an exercise price of $0.475. These options were already in the money when they were granted," he said.

"This works out to about $1,030,200 for Greg's last two months of work, on top of his normal salary. Shareholders, on the other hand, get 70c a share and Cephalon an absolute bargain."

Bioshares editor David Blake welcomed the bid as positive news. "Cephalon is taking over a drug which may still have risks attached to it, and more capital is going to be needed before the drug is commercialised," he said.

"Some investors may not get their money back in the takeover, but you have to ask whether the market would continue to have the patience to see the drug through," said Mr Blake.

Last year, ChemGenex's drug, Omapro, was snubbed by US regulators, who said it should have developed a test to diagnose patients with the faulty genes.

"The FDA decision put us in a difficult position, but we regrouped and got back on track," Dr Collier told BusinessDaily.

http://www.heraldsun.com.au/business/takeover-talk-splits-opinion/story-e6frfh4f-1226030366639?from=public_rss
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There's a big difference between $2.90 and 70c.. or is that just me??