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No. of Recommendations: 4
Anyone care to try and make a compelling case FOR the buyout at this price?

I had an opportunity to listen to the conference call discussing the rationale by each company for this merger.

In the last quarterly report, Steve Collinson stated Aurora would be running at no earnings for two years due to their commitment to plow more back into research to get more toward the end target of marketable drugs.

I suspect Aurora views this merger as a shortcut to that goal, since VRTX offers experience and expertise in bringing target drugs through the process. Steve Collinson rearticulated his vision to get to more profit by enhancing Aurora's opportunities "downstream." I sensed that Aurora carries the expertise in developing high throughput methods for drug toxicity, cell target, and ion channel technologies, but lacked sufficient functional targets to achieve their vision.

VRTX is also a better company than the current revenues indicate. VRTX, on the conference call, was stated to have one drug through the process, but 12 high likelihood candidates on the near term horizon (no one-trick pony). VRTX also is expert in small molocule technolgy, with expertise in Kinase gene families, with the known potential of 500 targets.

One thing that I will miss are the colorful conference calls by Steve Collinson. My sense is he is quite the charismatic leader who markets the company well, and might just end up running the show.

That said, I think the company looked at its commitment to research and jumped at the premium knowing that Aurora alone was at risk with less expertise in guiding drug approval through the process, and needing more immediate access to drug target candidates to ply their processes.

drejt
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