Mar. 18 at 3:46 AM
$ALT ignore the AltImmune trolls!
Intercept sold off and ultimately got bought for “cheap” (~
$800M) because its NASH thesis failed. The company was once valued as a potential blockbuster & NASH leader, but after two FDA rejections, that upside disappeared. What remained was Ocaliva in PBC, a smaller ~
$300M revenue drug with safety concerns and competition, limiting growth.
Investor confidence dropped due to regulatory setbacks and management credibility issues. The market then valued Intercept as a declining specialty pharma, not a growth biotech.
The final
$800M deal (~3× revenue, big premium to trading price) was actually fair for what was left. Key lesson: biotech valuations depend on future potential, not current revenue—when potential disappears, so does valuation. ⬇️
Lesson for
$TNXP $NUVB and
$KALV on what a buyout could look like 👍
Hopefully not for a long time for Tonix. Nuvation & Kalvista could be imminent - right @Night_Owl_Biotech ?
