Both companies, Bristol and MSD, for a relatively low cost and with no direct financial benefit to VLA shareholders, now get to de risk Cavatak in its combination use.
So, if Cavatak causes any problem in combination use, they have been given a free pass by VLA to get out of/avoid putting any real money on the table.
In my mind that shows naivete or a risk-on strategy: and a real underestimation of the risks in biotech development.
The alternative would have been to force both Bristol and MSD to put their best offer on the table now, and let their shareholders wear the risk of failure. Yes, VLA might get less in that scenario, but if you've been a biotech investor for as long as I have, you know that a car crash is always just around the corner. A deal of any reasonableness validates the company, and the SP would rise. A lot.
As for continuous disclosure: MSD will be running the trial. They will tell you want they want, when they want.
VLA Price at posting:
68.0¢ Sentiment: Hold Disclosure: Held
