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cavalue, thank you for your excellent and substantive post. I look forward to gaining from your posts on the combined company.

Everyone has their own situation, but I think some of the disappointment among some ABSC shareholders may be linked to expectations they had for ABSC as a stand-alone company, with a slightly different risk profile than VRTX (still high, but different). In any case, I sympathize with those who may be disappointed -- hey, I calmly held ABSC from obscurity below 10 up through the bubble at 140, and back down, so it's not like I'm a completely detached observer --- but I appreciate your sober and constructive post.

I know my initial attraction to ABSC was the pick-and-shovel argument, which seemed (again, for my tastes and situation) to apply in the biotech area, with so many high-risk firms dependent on unpredictable trials and other specific milestones for a handful of compounds/drugs. My thesis was that ABSC would participate in a substantial portion of the upside potential (screening, licensing, potential royalties), while itself carrying a less substantial downside risk (not utterly dependent on a few drug candidates), due to its wide collaboration, and profits derived from the discovery process, regardless of the ultimate outcome.

Anyway, it appears that ABSC management (both in their Big Biology initiative, and now, obviously, in their merger decision) concluded that pick-and-shovel alone would not make it, at least in ABSC's case. I respect their call on this one, and plan to stay with the merged company. And let me add my thanks, cavalue, to those of jjrp, for the links you posted. Clearly I've got homework to do on my "new" company, and I look forward to it.

jjrp, thanks to you too for your post. And drejt, also. It's great to see good substantive posters come out of the woodwork. Perhaps the combined ABSC/VRTX board won't be as sleepy as this one has been?

And, while I've got you all here together .... just a question. (1) Do you agree with what seems to be the implication of the ABSC decision to merge --- that the biotech tool-maker "pure play" model is simply not viable (i.e., "ya gotta have pipeline, baby!")? (2) If, notwithstanding ABSC's decision, it's NOT a generally non-viable model, are there any promising candidates to fill the space created in my portfolio by the disappearance of ABSC as a tool-maker "pure play"?

Thanks for any feedback on that.


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