ARTICLE | Finance
Forward’s windfall
One investor’s view of what Forward Pharma should do with $1.25B windfall
January 20, 2017 11:43 PM UTC
At least one investor in Forward Pharma A/S (NASDAQ:FWP) views the biotech’s deal with Biogen Inc. (NASDAQ:BIIB) as akin to an acquisition with an upfront payment and a contingent value right, and hopes management will return the majority of the $1.25 billion cash windfall directly to shareholders.
On Jan. 17, Forward jumped $8.85 (48%) to $27.20 after the biotech announced a licensing and settlement agreement under which Forward will grant Biogen co-exclusive U.S. rights, and exclusive ex-U.S. rights, to IP related to dimethyl fumarate (DMF), the active ingredient in Biogen’s multiple sclerosis drug Tecfidera. Forward will receive a $1.25 billion cash payment...