Quote:
Originally Posted by DayTrader 
Next week will be interesting for KV/A.
Keep in mind though, Gestiva is a product that has not been created by KV/A, it's made by Hologic, Inc. KV/A simply has an agreement with Hologic that they would buy it if it passes FDA.
Remember, when a company buys another company, a product, or service the stock tends to tumble as apposed to being bought out or a service is being acquired.
Therefore, it will be very interesting to see what will become of this. whatever the outcome is, I think the bigger affect will be on Hologic Inc. (HOLX).
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I look at it in a different way. While HOLX is a play here, I think that if you take in to account the money spent developing, filing FDA paperwork, running clinical trials, waiting, etc.. that KV gets a drug ready for market without having to do much other than buy it. If the drug is not approved then they don't have to pay HOLX, how would that play out? Would HOLX lose value but maybe KV would not?
IMO KV is the safer bet, I think they come out better if the drug is approved but they certainly didn't burn any resources and time on a failed drug. Seems like you win no matter what.