You love to point out that Teva did not continue. But fail to note that Teva still has equity in MSB and released MSB from any payment obligations, yet we got to keep the IP.
My personal opinion regarding Teva's continued presence in MSB's register is, it is currently stuck, unable to offload without crystallising substantial loss, just like most holders of MSB, big and small.
It has to be noted that Cephalon's entry level back in December 2010 was A$4.35. Therefore, with MSB now trading at $1.12, its investment in MSB is currently sitting at a 75% paper loss.
My guess is if there is anyone (Celgene / Other Big Pharmas / Instos) who is willing to buy its parcel, Teva will gladly deliver its parcel of shares with both hands, even if this means realising a loss of $167 million.
Unfortunately for Teva, at the moment, it looks like there is nobody who is interested in buying its parcel.
With the end of September only a couple of days away, my guesstimate of MSB's dwindling cash balance is currently between $60 - $65 million. With the ATM machine to be turned on any moment now, it looks like Teva is going to be stuck in MSB for a little while longer. Therefore, do not confuse its continued presence as being a vote of confidence in MSB.
Money Week 22/9/16, page-21
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