Thursday, December 2, 2010

Merck Now Confirms: "We're Buying All SmartCells Shares" -- Back Bay Angel Funds Win Big

Here was my overnight piece on the rumor -- now it's a fact:

From Merck's press release -- of an hour ago:

. . . .Under the terms of the agreement, Merck will acquire all outstanding stock of SmartCells, Inc. In return SmartCells shareholders will receive an upfront cash payment and be eligible to receive clinical development and regulatory milestones for products resulting from the transaction for potential aggregate payments in excess of $500 million. Sales-based payments for products resulting from the transaction will also be payable. SmartCells' board of directors has unanimously approved the transaction. . . .

My reaction? In view of these uncertain life sciences development market conditions, that's a pretty heady valuation -- for a company with no revenue and no proven product in any clinical trial. even so, it may turn out to be a very favorable price, if this nano-tech approach pans out in patient trials. We'll keep you posted.

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