CVTX gets buyout offer-

Today, Astellas made public thier attempts to purchase CVTX. They apparently made an all cash offer in November for $16/share- back when the stock was trading at arround $8-9 and were rebuffed. Now that the stock is up in the $11s, they are trying to exert pressure on management to come to the table.

CVTX and Astellas have worked together for years, and a fumor of a acquision is one I first heard about three years ago. CVTX's second drug, regadonosin was brought to market in cooperation with Astellas- who paid for 2/3 of the cost of the trials and is now selling the durg- giving CVTX a royalty.

They say in their open letter today, that during this interaction they have watched CVTX grow and have been very impressed with the potential for further growth- if they had more resources. Apparently CVTX hasn't been willing to sit down with Astellas to discuss their offer further.

This morning CVT's stock is trading above the $16 offer price. It seems clear that for Astellas to prevail, they will have to raise their offer price at least a few bucks. The premium that was present in November is no longer there as great as result of a 30% appreciation in the stock ( which was a result of increasing sales and revenues.)

My guess and hope is that this deal does happen at arround $19. Apparently Astellas has plenty of cash, and completing this acquision would save them some $20-30 million/year in royalties right off the bat.

I certainly hope that some of you have followed my suggestion of buying this stock when it traded in the single digits.

One more interesting issus: the spate of insider buying in December- Was it related to this offer? If so, would that make it illegal? Something to look into after I realize my profits.