Horizon Pharma Inc., An Overvalued And Over-Hyped Company Performing A Questionable Acquisition To Mask Deteriorating Organic Revenue Growth.

Jul. 23, 2014 12:01 PM ETHZNP6 Comments
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"Risk comes from not knowing what you're doing" Warren Buffett Twitter: @unemon1 Scribd: http://www.scribd.com/Unemon Webpage: unemon.com

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 ...

unemon.com/ResearchEasy/20140723_HZNP_Pa...

Disclosure: The author is short HZNP.

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