Analysts at Jefferies view Novo Nordisk bid for Ablynx too low
Danish diabetes care giant Novo Nordisk's (NOV: N) decision to go public on January 8 after the board of Belgian biotech firm Ablynx (Euronext Brussels: ABLX) flatly rejected its two acquisition offers is misguided, noted analysts at Jeffries in a note issued today.
The analysts believes both bids undervalued the assets and see the potential for counterbids given the company is on the cusp of launching a highly profitable rare disease drug in caplacizumab. They hike the PT to 42 euros/$51 assuming a 60% likelihood of a potential takeout at 49 euros/$60 versus standalone NPVs 31 euros/$38, and reiterate the stock as a Buy as a top pick in EU biotech.
They see mid-30s-euros to engage the board for a deal >40 euros: Ablynx' board rebuffed cash bids of 26.75 euros/share and up to 30.5 euros/share from Novo Nordisk declining to enter into talks.
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