WGS: @ Am Coll Med Genetics Multiple Presentations

And we all know that the price on 5/2/22 is irrelevant to the sale consideration which Opko received in the GeneDx transaction.

Because we all know that the price on the closing date has absolutely nothing to do with the terms to which Phil Frost agreed on behalf of shareholders.

A mere eleven bagger from WGS' current price of $12.12 gets Opko shareholders what Phil promised us on January 18 2022.

You're welcome. And thanks Phil!

I don't think "we all know that the price on 5/2/22 is irrelevant." But you be you and ignore the actual transaction price if you like. You also failed to note the over $100M in losses that kate took instead of Opko. 

I think you've now provided the answer to my befuddlement with many of your positions. If you think that the price on May 2, 2022 was the "transaction price", that explains a lot.

Stunning, actually.

Sounds about right. If you're really interested in the number, you could always SEARCH the appropriate thread for my post about it.

Some folks will cite chapter and verse about the value of WGS on this date or that date, and how that may or may not impact Opko, its earnings/lack thereof, headlines etc. However, one needs to pay close attention to the facts from the big picture.

So, you ask at what price is Opko "in the black".....but in the black vs what water mark/baseline is the most important variable here.

1. When the deal was struck on 1/18/22 the value Opko received was $623 million, including milestones. Don't take my word for it, read the deal terms in the Opko PR.
2. On April 29, 2022 (the date the deal terms were finalized), the total amount had declined to $472 million.
3. Today, Opko has received most or all of the milestones. Any partial incentive for 2023 will be de minimus anyway. So what has $623 million on 1/18/22 become today?
*$150 million in cash, which was ~115 million after tax, has been spent to fund the ongoing losses at BRLI. GeneDx losses, such a focus for one member here, went from $42 million to $21 million to $18 million from Q2 thru Q4 2023. Somehow, someway, Kate Stueland has been able to take the "$100 million in losses off the books of Opko" and shrink the run rate of those losses by a SIGNIFICANT amount. One wonders if she will have been permitted to do the same under the thumb of the Master Cash Incinerator had she not escaped from his flame-throwing clutches.
* 80,000,000 shares up front plus 700,000 shares for the 2022 milestone = 80,700,000 shares which are now 2,445,454 shares x $12.01 = $29,369,902

Let's round up and call it, pre-tax, a transaction value of $180 million. So $623 million has been reduced by $443 million, entirely due to "just another investment' by Phil Frost. The profound misunderstanding, and fallacy, of the argument that proposes "Technically Opko was "in the black" on the day they sold WGS" needs to be impugned. The point of such a thesis is that GeneDx, once a 'gem' in Phil's words, was just a loss generating division that needed to be sold to the first bidder. That the value received was a good deal for Opko, and the amount only important as evidence of monetization. Cash up front, losses off the books, and an investment for Opko shareholders is good enough. We went from the red to the black, is the thesis. And therefore, a good management move by Frost. I submit that is an absurd position that does not bear scrutiny. First, the "investment" we received, which Phil engineered and to which he agreed, went from a value of $323 million (80 million shares x $4.03 price of Sema4 when Phil signed the agreement) to $29.1 million today (80 million/33 x $12.01). Second, one must remember that WGS is now basically just the old GeneDx portfolio of business. That is, the legacy Sema4 business has largely been shed or closed. So Kate Stueland as CEO of GeneDx, with the same portfolio of business as the "gem" Phil once lauded, has turned her company around, to the tune of a $300+ million market cap. That market cap would look pretty good right now as part of Opko. Sure, she needed financing along the way (the first private placement, and the later PIPE). But if BRLI had been sold in pieces in Q1 2022, that could have financed a retained GendDx, and Opko might look quite different right now.

We're no doubt going to hear the counterfactual argument one more time. Ok, that's one point view of my observations. Another point of view is that Phil Frost has made a series of very very bad decisions for nearly 9 years. To be fair, he's made a few good ones too, chiefly buying ModeX (no one will convince me that the Merck deal was his doing, vs the obvious conclusion that the big shots at Merck were buying Elias and Gary...period). Now the stock price is the collective verdict on those decisions. The scale seems rather weighted to one side. Hence the $0.89 price tag on the shares, even though Phil, supposedly, put those who own those shares 'in the black' two years ago by selling a division, whose CEO now appears to be on the cusp of wiping the losses she inherited from Phil off her books.

Pdavid, from your question I can see that you may not have a full understanding of the important facts in the GeneDx transaction. And that's ok, because you're asking questions, which is very good. I simply advise you to pay close attention to the details in the differing views, be very careful in your thinking, and then decide which information makes the most sense. And keep in mind that the stock price is the product of millions of investors, their beakers filled with assessments, boiling off the irrelevant components of the complex solutions that public companies represent. What remains is the pure distillate.

If 'in the black' means realizing anything even close to the $623 million total transaction value, then WGS needs to reach ~$132. If 'in the black' means selling GeneDx for whatever terms you were able to negotiate as a quid for the quo of getting its losses off the books, then yes, you as an Opko shareholder were in the black on the day the deal was announced, as one member purports. Somehow though, I'd bet you don't quite feel like you're ahead of the game right about now. Maybe if Phil's 'investment' increases another 11 fold from its current price, AND he sells it, then does something in shareholder best interests with the cash, you'll feel better.

Dude, or whatever, the book value is NOT what your buddy sold it for. Capeesh? Your spin is Frost-worthy, via the Al Capone accountant Logal. Very interesting that this is your view. Which, even if true, or relevant, which it most assuredly is not.....means that we're still 20,000 leagues under the sea. Maybe you should ask Phil why he didn't include a ratchet clause.

Eighty-six-and-a-half cents.

You should really refrain from spreading false information here. The members deserve better. The drunks and cretins on Yahoodon't know better. We do.