Human Genome ($HGSI) RBC says current GSK bid for Human Genome undervalues sum of parts over long-run ($14.64)

Wednesday, April 25, 2012 at 8:06AM
DDE Editor in biotech, hgsi

• The firm sees $15-23 fair value but notes that a CVR might make sense for GSK if no compromise can be made. RBC believes GSK could raise its bid at least once but assumes that HGSI wants the higher end of RBC's valuation range. However, the firm notes there is no guarantee GSK will raise its bid and they don't see any other serious bidders that would bid materially higher.
• Rating is sector perform for HGSI. Target raised to $15 from $10.
• Analyst is Michael J. Yee

Article originally appeared on Daily Dose Equities - Wall Street Analysis for Biomedical Research (http://dailydoseequities.filmannex.com/).