Shares of ophthalmology company pSivida (NSDQ:PSDV) hit a 52-week high today on speculation from a Seeking Alpha blogger that it’s ripe for an acquisition this year.
PSDV shares hit $3.96 each today, a 52-week high, having gained some 15.5% since a blogger writing as "Bob’s Stocks" published the rumor yesterday.
According to the blogger’s calculations, pSivida stands to reap revenues of $315 million annually from sales of its Iluvien drug/device combination for treating diabetic macular edema.
"Therefore, based on the above projections, presuming that pSivida will get 315 million in revenue, the share price target of pSivida should be way north of $15.00," he wrote.
"The lack of ample eye care investment options is definitely a problem in biotech. There are simply not any options to invest in back of the eye disease devices. Therefore, making it a very valuable biotech, which deserves a high valuation based on this. pSidiva is a huge takeover target for big pharma who want to dominate the ocular market. Pfizer (NYSE:PFE) and Bausch & Lomb come to mind, as Pfizer owns over 10% of pSidiva already, and pSidiva is licensing Vitrasert and Durasert to Bausch & Lomb. It would be in both companies interest to buyout pSidiva to dominate the ocular market," according to the article.
PSDV shares were trading at $3.86 apiece as of about 3:50 p.m. today, up 3.8%.