This is obviously a pure speculation / hypothetical article. There’s absolutely no public evidence available right now that suggests OWCP is currently being considered by Big Pharma, but we know TEVA was interested in July 2015. We also know, by an easy Google search, that many Big Pharma companies are looking to spend money on acquisitions. Merck and Novartis are two of many. In fact, Novartis has up to $5 Billion burning a hole in it’s pocket, apparently.
Cynapsus Therapeutics Inc. (CYNA), a company focusing on Parkinson’s Disease, was acquired for $635 million. They have no revenue.
Pfizer acquired Medivation for $14 Billion this year, but they had about $2 Billion in revenue.
Cinven acquired a pharmaceutical research company, BioClinica, earlier this year as well for $1.4 Billion.
You get the point. There are a lot of acquisitions taking place all the time. With the news and updates we’re getting from OWCP, it feels like it’s only a matter of time until they receive another acquisition offer. That doesn’t mean Ziv Turner and crew will accept, however.
We all know based on simple comparisons of company type, Market Value, etc. that OWCP should be trading between $0.50 – $1.00 per share right now. Maybe after more US states legalize Marijuana for medical, we’ll see a tremendous surge in share price in just a week or two. It happened back in 2012.
If you want to day dream a little about what your shares are worth with an acquisition scenario, simply take the Buyout Value divided by the number of Outstanding Shares (around 135.5 million as of 10/30/16). For example: If Merck were to offer $1.0 Billion for OWCP, we’d expect around $7.38 per share. Don’t want to go overboard? How about $500 million? That’s still $3.69 per share. Still pretty sweet, right?
Until then, let’s just keep enjoying the upward trend. Many predict $0.50 per share by Election week. Granted, how many lack the patience for multi-dollars and sell at $0.50?
For What It’s Worth:
‘Investo7’ on iHub reminded us all about VRML’s run from $0.048 to $1.29 on Friday, September 11th, 2009 with a News Release about the FDA clearing a test for Ovarian Cancer. VRML continued to climb as high as $3.08 the following Monday, $14.00 within a week, and $20.00 after a month. Rumors of a buy out lead the stock all the way to $34.00 within 6 months.
$0.048 to $34.00 in 6 months. Tell me again why OWCP can’t run from $0.17 to $8.00 when products come to market in early 2017?