I have received a analyst report on acr which states the following interesting facts. 1.The fda decision on axiron could be issued as early as 27th november 2010(not very far away). 2.Their valuation based on sales of$910 million is $3.41. 3. Depending on what lilly's sales forecast for axiron would turn out ,we speculate that we could see a takeover for acr at around $4.00/sh in 2011. 4.If faster growth occurs we estimate that acr could be worth $5.00/sh to lilly. 6.Acr status as a pdf means that dividends and capital gain are tax free in the hands of most investors which makes a takeover bid more appealing to shareholders. Based on the above you could expect acr share price to firm up over the next couple of months.Once the approval is given lilly has to pay acr $87 mill us and the board of acr has said that most of this will be distributed to shareholders tax free.
ACR Price at posting:
$1.95 Sentiment: ST Buy Disclosure: Held
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