I'm told that some of Amag's largest shareholders aren't happy at all with this Allos merger. Whether that anger and frustration is enough to compel anyone to try to stop the deal from closing remains to be seen. What I do know, talking to some of Amag's shareholders, is that management needs to do a better job selling the merits of merging with Allos.
Lastly, you have to feel bad for Allos shareholders, who are really getting the shaft. The merger, as proposed, has no collar, only a fixed payout ratio, so the payday falls as Amag's stock price falls. The deal, as announced Wednesday morning, valued Allos at $2.44 a share, a smallish 18% premium. As of Thursday midday trading, the merger with Amag valued Allos at $2.05 -- technically a take-under, no premium.
If Allos shareholders want someone to blame for their shabby treatment, direct your ire to Warburg Pincus, Allos' largest shareholder, which wanted a speedy, no muss exit from its position, according to sources.
Brent B. asks, "Any new information or opinions on Nymox (NYMX)? Your last article on Nymox was open ended due to the lack of information given by [CEO Paul] Averback. This target industry is real and growing. If the product does close to expectations it should be a great stock. Just wondering if you have heard or learned anything new since your February article."In May, Nymox issued a press release announcing the presentation of new "positive" data on its experimental drug NX-1207 for the treatment of enlarged prostate at a company-sponsored symposium held in conjunction with a medical meeting of urology experts. I didn't attend the meeting, and since Nymox's press release was short on details, I asked the company to send me the NX-1207 slides or presentations used at its symposium. It sounded like a reasonable request but Nymox didn't respond. Not an encouraging sign at all, just a continuation of Nymox's lack of transparency when it comes to NX-1207. --Written by Adam Feuerstein in Boston.
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