Thursday, August 02, 2012

Close Call with Inhibitex, Inc.

Back in January / February I was in very big on the Inhibitex, Inc. merger arb play. Inhibitex received a nice bid from Bristol-Myers Squibb Company (Ticker: BMY) for its hep C drug, which was in early phase clinical trials. Fortunately, the deal closed without a problem in February, but looking back now it was a bit crazy going “all in” on a merger arb play. Today, Bristol-Myers announced that they have stopped the clinical trials due to serious adverse effects, which involved Inhibitex’s hep C lead drug. If this happened before the closing in February, I would have been burnt toast.


Post a Comment

<< Home