Monday, July 08, 2013

Sold Optimer Pharmaceuticals

I sold my position in Optimer Pharmaceuticals, Inc. (Ticker: OPTR) this morning at $15.33 generating a net gain of 1.79%. I still have an overall net loss in Optimer Pharmaceuticals of ~ 10% after this sale. I didn’t play this one well as I got shaken out too early. I have to learn to be more patient with some of the special situation plays. In any case, it looks like we still have t’ill the end of the month before we know how this will unfold.


At July 14, 2013, Anonymous Anonymous said...


In regards to OPTR while learning more about the pharma companies reading various opinions I came across the following information. We would be interested to read your thoughts on what I have penned below if you are not already aware.

4-2-13 This is older news but I believe OPTR CEO McKinnell may have been instrumental in bringing in as Salix as the third bidder recently mentioned in the bloomberg article. No other earlier articles had Salix pegged as a suitor.
“To help weigh its options, Optimer recently tasked former Pfizer ($PFE) CEO Hank McKinnell with running the company. McKinnell had stepped into the chairman's job vacated by Michael Chang, who left last year under a conflict-of-interest cloud, and in February, took the CEO post as well. McKinnell has quite the roster of industry contacts, so he could be instrumental in finding a buyer.”

CNBC Jim Cramer mad money recently invited the Truis CEO Jeff Stein on to discuss his company and pipeline. Jeff Stein in discussing the issue with superbugs stated that between 1983-199 there were 16 new antibiotics introduced. In the last 5 years there have been only 2. The FDA is concerned and wants to expedite the process for developing drugs to treat bacterial diseases by using the GAIN Act (Generating Antibiotic Incentives Now) established just over a year ago. Trius and CBST seem to be at the forfront working with the FDA.

There is a that really likes TRUIS Therapeutics (TSRX) its future potential and seems to think CBST should buy them and would make a better fit than versus OPTR.

OPTR acquisition would be a catalyst for TSRX especially if CBST is not the buyer.

5-13-13 Trius Therapeutics, Inc. (Nasdaq:TSRX), a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious infections, announced today that it has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) on an application related to its tedizolid phosphate patent portfolio. This newly allowed patent application protects a therapeutic combination of the experimental medicine tedizolid phosphate with a currently available antibiotic daptomycin. I believe CBST has an IV version of daptomycin.

Is there something more important going on behind the scenes with the antibiotic drug development?

Is there is chess match going on between some key players (suitors) due to this niche segment?



At July 30, 2013, Anonymous Anonymous said...


OPTR being acquired by CBST with a twist. CBST also acquiring TSRX for a double acquisition. I stuck it out but not sure if I was wise. CBST offering $10.75 in cash and a Contingent Value Right of $5.00. I have no experience with CVR's. What can you share about the good and the bad of a CVR in a deal? Are they tradeable? etc.?



At July 30, 2013, Blogger Money Turtle said...

I was involved in Genzyme and received CVR's in which the payout will be based on the approval and sale of Lemtrada. The Genzyme CVRs are traded, but it really depends. I've seen more companies issuing CVR's recently that are not traded so you just have to wait it out on those. The CVR's are very volatile... essentially a call option. You can hit it big or end up with nothing if things don't work out. They should provide additional info on the CVR's in the SEC filings. You definitely have to be patient with the CVR's.

At July 31, 2013, Anonymous Anonymous said...


Thank you for the quick primer on CVR's. I read the OPTR, TSRX and LEAP SEC filings and they all state CVR's are issued after the closing which makes sense since they are all based on future sales performance. No doubt a long term crap shot if you will.

So is it possible to sell OPTR shares this week and repurchase shares prior to deal closing to receive CVR's? It appears purchasing in the money call options prior to closing may not receive CVR's.



At July 31, 2013, Blogger Money Turtle said...

The Optimer CVRs will be tradeable. You should be able to sell Optimer and buy back prior to closing to receive the CVRs or you can wait until the CVRs start to trade if you just want to play the CVR. My experience is that the the institutions will start dumping the CVRs once they start to trade.


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