Thursday, May 30, 2013

A Little Optimer Pharmaceuticals

I took a small stab (a 3% position) at Optimer Pharmaceuticals, Inc. (Ticker: OPTR) today at $14.81. We should be nearing the conclusion of the bidding process with at least 3 strategic buyers making a bid for Optimer (Cubist, AstraZeneca and Astellas Pharma). The odds look good for a deal to happen. If I were to place a bet (which is actually what I’m doing), I would say Cubist gets Optimer.

10 Comments:

At May 30, 2013, Anonymous Anonymous said...

MT,

I took a position in OPTR earlier in the week. Based on the recent earnings report I am targeting $18 versus $20 ($1b) which OPTR indicated they were seeking last year. When observing the options open interest (OI) for JUN and SEP very heavy call OI for the $15.00 and $17.50 strikes. The current break even would be $16.20 and 16.60. This looks like some smart money may be expecting a take out price between here. Many times they are wrong.

Don't rule out another news leak to spike the price as OPTR is heavily shorted.

James Flynn of Deerfield Management recently filed an SEC 13G indicating a stake of 2,697,659 shares or 5.54%.

Good Luck to us both.


Regards,

inforesource7

 
At May 31, 2013, Anonymous Anonymous said...

Mt,

We we received a little short lived stock pop today on OPTR. I dont know the source of the pop but some large options volume on the JUN Call $15.00 strike capitalized on the mutted pop. Separately I read that Management was giving presentations to the first round bidders by end of month.

Let us know if you heard or read anything regarding the stock pop.

Also alot of broad market index rebalancing happening today.


Regards,

inforesource7

 
At June 03, 2013, Anonymous Anonymous said...

MT,

I cam across this information regarding CBST/OPTR and could use some interpretation and insight if you can.

"CB315 (and Optimer DIFICID co-promote) Our two year co-promote with Optimer for the CDAD therapy Dificid in the U.S. began in July of 2011 and continue through July of this year. This has been another great opportunity to leverage the acute care infrastructure we built in the U.S. and we look forward to continuing our partnership with Optimer over the next several months.

We will continue to enrol patients throughout 2013 in the phase 3 program for surotomycin formerly known as CB-315 in clostridium difficile associated diarrhea, or CDAD.

Sure, while we are still involved with Optimer until July of this year we don’t expect that the relationship will continue past that. Both companies have essentially said that the partnership will likely end at that point. We’ve been very pleased with the relationship and we are continuing to promote the product through July of this year but at that point the Optimer folks will focus on Dificid and we will focus on Surotomycin (CB-315). And we do believe that the market opportunity remains healthy. That’s still a very, very large market, worldwide we estimate they are at least 30 million days of therapy in the CDAD space. And while we will have to see what the impact of Optimer’s pricing schedule will be and it’s really too early to tell what impact that will have on the market. We still believe that the market is strong and that where we have a drug that can get to the 400, 500 million worldwide peak year number.
And again, keep in mind Alan that we have complete rights to this product, that we owe no royalties and essentially the incremental commercialization costs assuming ceftolozane/tazobactam will be minimal."

http://www.biotechduediligence.com/1/post/2013/05/cbst-recent-financial-product-and-pipeline-highlights-from-cubist-pharma.html



Regards,

inforesource7

 
At June 03, 2013, Blogger Money Turtle said...

Cubist clearly believes that the C. Difficile is big with peak sales in the 400 to 500 million. Optimer's drug has been approved and they are looking at expanded uses with ongoing trials. Optimer is in the lead for now and I can see that Cubist may be a bit reluctant to go after Optimer since they have a potential competing product. I still think Optimer will be a nice fit for Cubist.

 
At June 05, 2013, Anonymous Anonymous said...

MT,

OPTR good day to average down your position. You might have one more day to think about it as I am hoping and expect Friday to be a positive day in the broad market and for OPTR. The shorts are trying real hard to lower the stock price and with no rumors they have free reign until a large buy order (today 2P, 2:3P and 3P) lets them know they are limited.


Regards,

inforesource7

 
At June 05, 2013, Blogger Money Turtle said...

With days like this, everything gets hit. This is when you want to do some buying. I was picking up some stocks on sale today. I didn't add to Optimer, but definitely considering. Like you, I have a feeling some news will leak out soon.

 
At June 07, 2013, Anonymous Anonymous said...

MT,

FYI, LIFE SEC 8-K filing today.

"In connection with the pending acquisition (the “Acquisition”) of Life Technologies Corporation (the “Company”) by Thermo Fisher Scientific Inc., the Company received on June 7, 2013, a request for additional information and documentary material, often referred to as a “Second Request”, from the United States Federal Trade Commission (the “FTC”) in connection with the FTC’s Hart-Scott-Rodino regulatory review of the Acquisition. The Company has been working, and will continue to work, cooperatively with the FTC and continues to expect the Acquisition to close in early 2014."


Regards,

inforesource7

 
At June 07, 2013, Blogger Money Turtle said...

Not a surprise at all... I believe they were expecting this all along with a closing date in early 2014. There are some overlapping business between Life and Thermo, but I don't see anything concerning that would block this deal.

 
At June 14, 2013, Anonymous Anonymous said...

MT,

Regarding LIFE FTC second request, no worries here either, just an FYI.

Although we don't have any cost details is it normal for LIFE or any company to continue to make acquisitions given that is is being acquired? For example, yesterdays announcement to purchase LSK. I admire the aggressiveness and most likely TMO's was aware and it has their approval.

http://www.prnewswire.com/news-releases/life-technologies-acquires-lsk-leading-instruments-distributor-in-korea-211367231.html


Regards,

inforesource7

 
At June 14, 2013, Blogger Money Turtle said...

It is interesting that Life continues to make acquisitions now. I have to imagine that LSK is small and doesn't really have a material impact on things.

 

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