These notes are about Horizon Pharma Inc. (NasdaqGS: HZNP) currently trading at $14.42
See you in the sub $10 LEVEL ...
PART 1: THE QUESTIONABLE VIDARA ACQUISITION (stay tuned for PART II)
Why would you value $704m something (VIDATE/Actimmune) that 2 years ago had been sold for $55.0 million in cash, plus certain (minimal) conditional royalty payments ?
At closing of the VIDARA Acquisition there will be approximately be 122 million fully-dilute shares. At current HZNP ($14.30) shares prices this implies a $1,744.6m valuation for the Company's Equity. This transaction will also add approximately $200m ++ in debt to the already present $112.7m net convertible debt and $313.4m Derivative liabilities HZNP had on its Balance sheet as of March 31, 2014.
Do you really think HZNP real value is that high?
I DO NOT THINK SO ... & ... THIS IS WHY I DECIDED TO SHARE MY PERSONAL NOTES WITH YOU in the coming months ...
Disclosure: The author is short HZNP.