ellaruth's  Instablog

Send Message
Employed in healthcare for 35 years. Interested in novel and destructively innovative healthcare technologies.
  • Jim Cramer Speaks Of "Roche Bolt On Acquisition" Is Cellceutix Qualified? 2 comments
    Aug 28, 2014 11:51 PM | about stocks: CTIX, RHHBY

    Will Cellceutix (OTCMKTS:CTIX) Be A " Roche Bolt On Acquisition" ?

    This is a sweet meditation that I am echoing from Investors Hub.

    Certainly some Golden Apples in Pictures of Silver.

    Thanks to faraifarai for this. Applause is in order.

    faraifarai Thursday, 08/28/14 07:06:42 PM
    Re: None  
    Post # of 67137    

    Cramer Roche Rumor Flames:

    Cramer: Sector could be hotbed of 'bolt-on' deals

    Language from a major company used to describe a recent acquisition, suggests to Jim Cramer there could be many more deals coming in this sector.

    Earlier this week, "I sat and listened in amazement as drug giant Roche described its $8.3 billion purchase InterMune, as a bolt-on acquisition."

    The use of the words "bolt-on" really intrigued Cramer.

    "Typically, on a conference call, management uses the term to signal the acquisition isn't expensive," Cramer explained.

    The InterMune deal, however, is valued at $8.3 billion and gives Roche access to a drug called Pirfenidone, a pulmonary fibrosis treatment that could potentially save more than 100,000 American lives.

    In the past, describing an acquisition of such magnitude as bolt-on, would seem modest at best. Cramer, however, doesn't think modesty is the issue. Instead, he believes the language reflects a subtle but important sentiment shift, and one which is potentially investable.
    Here's his line of thinking:

    1. Cramer believes the InterMune acquisition stems from a growing realization among management that Roche's labs weren't developing exciting new drugs at nearly the same rate as more nimble, biotech firms.

    2. Taken a step further, Cramer thinks if Roche wants a more aggressive pipeline, then rivals do, too. Therefore, he thinks it's reasonable to conclude that there could be more deals like Intermune, in which big pharma attempts to grow through a strategic acquisition.

    3. And, if about $10 billion has become a comfortable amount for big pharma to spend, hence the bolt-on description, then many more companies may be in play than Cramer or anyone else previously thought.

    On top of that, Cramer also says because InterMune was not yet profitable and trading at a stretched valuation, companies that might not typically be viewed as targets in the past, may, in fact be in play, if they have a promising drug in the pipeline.

    Please note that this is not a buy or sell recommendation, it is largely an implied application of Jim Cramer's, interpretation of a Roche executive words applied to Cellceutix. I think that its worth studying.

    Another I HUB contributor has added to The Golden Apples

    Dr Jerry Wednesday, 08/27/14 09:56:52 AM
    Re: None  
    Post # of 67137    

    Most people in medicine know about the existence of defensin mimetic antibiotics but most have no idea that there is drug called Brilacidin that is a broad spectrum antibiotic with a long terminal half life and low toxicity and unheard of bacterial resistance.

    Once the phase 2b data is unblinded there will be intensive interest from the medical/pharmacological communities if the data shows high efficacy at one time dosing.

    I think Leo should entertain writing a piece to not just the medical community but he should address the main stream media like Scientific America and Time magazine.

    Leo and Menon could one day be on the cover of Time Magazine for bringing to humanity a novel first in class broad spectrum antibiotic with no resistance potential.

    I think that these are some of the best words that anyone could think together.

    As always any biotech with compounds that are not FDA approved is subject to be an investment where you could loose everything that you invest. Cellceutix is yet to have an FDA approved drug. Ella Ruth

    Stocks: CTIX, RHHBY
Back To ellaruth's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • Hope4Future
    , contributor
    Comments (291) | Send Message
    You should ask Cramer. Call in and ask him. He'll laugh in your face.
    18 Sep 2014, 02:35 PM Reply Like
  • ellaruth
    , contributor
    Comments (1090) | Send Message
    Author’s reply » Mr Cramer is aware of Cellceutix! As much as key persons at a number of major NYC investment banks. He normally avoids public identity with OTC stock. He vastly prefer's stocks to be listed on major exchanges for legal reasons. Evidently you understand all to well what it is to be laughed at. I will try to avoid further comment with regard to Mr Cramer.


    18 Sep 2014, 03:01 PM Reply Like
Full index of posts »
Latest Followers


  • Budget for all operating expenses was 16.7 m, but they only spent $12.9 m. CTIX has come in under projected budget every year for 7 years!.
    Sep 14, 2016
  • I HUB's B Kahuna RSVP CTIX 10K Notice the company spent only $9 m for trials and drug development for the year? The projection was 12m.
    Sep 14, 2016
  • CTIX mgmt adv 5 drugs in clinical trials over 3 years on less than $25m. Imagine how far they can go w $50m plus a few 100m in milestones.
    Sep 14, 2016
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.