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Chris DeMuth Jr. is the founder of Rangeley Capital LLC. Rangeley is an investment firm that focuses on event driven, value-oriented investment opportunities. Rangeley Capital and his value investing forum, Sifting the World (StW), search the world for misplaced bets. Rangeley exploits them for... More
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  • Rangeley's DeMuth Says Sanofi Right May Return 50% In 2013 5 comments
    Sep 17, 2013 4:41 PM | about stocks: SNY

    Chris DeMuth, portfolio manager at

    Rangeley Capital LLC, the New Canaan,

    Connecticut-based event-driven

    hedge-fund firm, said Paris-based drugmaker

    Sanofi's contingent value right

    may return 50 percent this year.

    The right, publicly traded and issued to

    Genzyme Corp. shareholders upon its

    sale to Sanofi-Aventis in 2011, includes

    payments based on a potential Federal

    Drug Administration approval and sales

    of a drug used to fight Multiple Sclerosis,

    DeMuth said in an e-mail.

    "Our expectation is that the right

    holders will receive a payout equal to

    approximately 50 percent of the market

    price by the end of the year based on the

    potential FDA approval,'' Demuth wrote.

    "Once the likelihood of these sales are

    re-rated, we expect the right to trade

    at or above $2 after a $1 payment for a

    total value of over a 50 percent upside

    in 2013. CVR owners will receive $1 for

    FDA approval, $2 if Lemtrada sales hit

    $400 million in certain geographies by

    certain dates, $3 for sales over $1.8 billion,

    $4 for $2.3 billion of sales and $3 for

    $2.8 billion of sales.''

    Rangeley used to be a shareholder

    of Genzyme before it was purchased,

    DeMuth said. Rangeley is run by DeMuth

    and Richard Townsend.

    Stocks: SNY
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Comments (5)
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  • jbzw
    , contributor
    Comments (1131) | Send Message
     
    This should be a great ride ! Thanks for your excellent imput.
    17 Sep 2013, 06:11 PM Reply Like
  • byslkwd
    , contributor
    Comments (114) | Send Message
     
    whats the symbol for the cvr?
    18 Sep 2013, 09:45 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11145) | Send Message
     
    Author’s reply » I am writing it up now for an article on SA. The ticker symbol is "GCVRZ".
    18 Sep 2013, 09:47 AM Reply Like
  • Andrew Williams
    , contributor
    Comments (342) | Send Message
     
    I think this Bloomberg Brief had more to do with yesterday's boost than the press release.

     

    Fyi - on Sanofi's 3Q call, they mentioned a conf call in "early Oct" to update investors on Lemtrada.

     

    Cheers,
    18 Sep 2013, 10:05 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (11145) | Send Message
     
    Author’s reply » Yep. We will know much more then.
    18 Sep 2013, 11:00 AM Reply Like
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