I'm confident shareholders will vote against the Amag-Allos merger. I'm less certain about the related but separate proposal from hedge fund manager Martin Shkreli to shake up Amag's board and ultimately take over the company. He may not have the confidence of Amag shareholders to pull off what he wants to do, even if it's the right thing.
From a stock perspective, a "no" vote on the merger should send Amag shares higher and Allos shares lower. Amag's board, if it's not completely brain dead, will finally fire CEO Brian Pereira and conduct a proper auction process to sell off Feraheme.
Allos, on the other hand, will be left at the altar begging for companionship. I won't be surprised to see Spectrum Pharmaceuticals (SPPI - Get Report) re-engage and make a low-ball offer for Folotyn. That would be a smart move for Spectrum, which has a much greater chance of making money with Folotyn by leveraging its existing cancer drug business.
Nikolas V. writes, "Adam, you are very good at what you do. I like it. Keep it this way. Thank you."Thank you, Nikolas. I'm including your thoughtful email in this week's Mailbag to counter what I anticipate will be a flurry of not-so-nice emails from Keryx fans coming shortly. One housekeeping note: The next Biotech Stock Live Chat is scheduled for Thursday, Oct. 20 at 12 p.m. ET. --Written by Adam Feuerstein in Boston
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