Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Optimer Pharmaceuticals Shares Soar... for the Right Price, That Is!

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biopharmaceutical company Optimer Pharmaceuticals (UNKNOWN: OPTR.DL  ) rose by as much as 24% after a Bloomberg report cited that interested bidders in the company could include GlaxoSmithKline, AstraZeneca, Cubist Pharmaceuticals, and Astellas Pharma.

So what: The news of interest in Optimer -- which has one approved drug in Dificid for the treatment of Clostridium difficile-associated diarrhea -- shouldn't be any surprise as the company jumped higher in late February when it announced it had planned a strategic review for the company. According to people familiar with the matter, Optimer could draw as much as $1 billion in value. As you might imagine, not a single company was willing to comment on these "rumors."

Now what: As I said back in February, with only one drug currently on the market, any buyer would be crazy to pay a significant premium just to get their hands on Dificid. Based on the $154 million sales estimate by Wall Street in 2014, I can't imagine Dificid sales getting much past $200 million to $225 million at their peak. In short, what large pharmaceutical is going to pay more than three times peak sales for one drug? Not too many that I know of, which is why I'd suggest backing away from Optimer.

Craving more input? Start by adding Optimer Pharmaceuticals to your free and personalized watchlist so you can keep up on the latest news with the company. 

While you can certainly make huge gains in biotechs like Optimer, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2342237, ~/Articles/ArticleHandler.aspx, 9/30/2016 4:56:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
OPTR.DL $0.00 Down +0.00 +0.00%
Optimer Pharmaceut… CAPS Rating: *
ALPMY $15.62 Down -0.06 -0.38%
AZN $32.86 Down -0.19 -0.57%
AstraZeneca CAPS Rating: ****
CBST.DL $0.00 Down +0.00 +0.00%
Cubist Pharmaceuti… CAPS Rating: ****
GSK $43.13 Up +0.23 +0.54%
GlaxoSmithKline CAPS Rating: ***