Sorry but "The Aussie discount" in this case is caused BY...

Sorry but "The Aussie discount" in this case is caused BY AUSSIES.
BTW Merck is actually paying 450M AUS for Viralytics, since there is 50M on the balance sheet, they get that cash, so subtract it from the purchase rice, now its down to $340M US to buy the whole thing with no future royalties or milestone obligations.

Its really simple, the "aussie" BOD should have grown a spine!
You get the offer to buy the company, and you say NO WAY at that price.

You say you will have to go "unfriendly" in this takeover.

BUT, you say to Merck you would be happy to license the technology for $500M AUS up front, a 12% royalty on sales and a few milestones payments for FDA approvals etc.

THEY WANT THE VIRUS! So negotiate.
They do not want to go hostile in the takeover, but if they do go hostile and all the institutions vote the deal in, then so be it, at least you put up a fight.

Now you will also get an "aussie" analyst who will write an opinion that it is a fair price... WTF... just look at the deal J&J paid for a "pre-clinical virus", $140M US "up front". Thats almost half what Merck is paying outright for the whole thing, with no future payments, its crazy.

Your selling an "aussie" treasure at a discount, and the market prices being paid for phase II oncology assets in immunology prove it.

Unfortunately time is running out, and BMS is in the middle of integrating their $1.85B US deal for a phase II immuno-oncology product with Nectar, and I doubt they will take on the distraction of a counter offer, that is one of the reasons Merck jumped in when they did, BMS is distracted in a BIG WAY, and probably too much work being done with NKTR-214. Also BMS would have to justify to their BOD another immune-oncology acquisition so soon after this deal, it just wouldn't fly with BMS BOD, and Merck knew that as well.

Sad.