Last Updated Jul 31, 2009 10:22 AM EDT
an almost 11% discount to Medarex's closing price of $17.90, reached on August 21, 2007 ...In a startling lack of self-awareness, Blumberg admits that this mighty peak was reached "before the current financial crisis."
Nonetheless, he believes that if Medarex had started an auction for its wares, shareholders could have gotten even more. His logic is based on a notorious press release noted by BNET in June, which said that in a Mayo Clinic trial two men with with "inoperable" prostate cancer had become free of the disease after taking Medarex's ipilimumab. Blumberg terms the release "dramatic" and "nothing short of astonishing."
BNET noted that the release was indeed "astonishing," if only because it contained no information that backed it with any scientific credibility. Even so, Medarex's stock bumped up only to about $8.40 after the release -- in other words the full value of the potential described in the release was priced in to the stock before the acquisition.
Blumberg believes that BMS and Medarex are keeping a secret:
... the two companies are the only ones who have any knowledge of the full potential of ipilimumab.... which is why they did not seek competing offers for Medarex. In the meantime, Blumberg is probably the only person in America right now who thinks a 90 percent return in the stock market is bum deal.