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Jim Cramer Speaks Of "Roche Bolt On Acquisition" Is Cellceutix Qualified?

|Includes: Innovation Pharmaceuticals Inc. (IPIX), 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
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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
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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