, Columnist
Tesaro Is a Victim of Its Own Valuation
Its's hard to justify a huge price when Clovis is so much cheaper.
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It's been almost exactly a year since a positive trial result for ovarian-cancer drug Zejula doubled Tesaro Inc.'s share price. Since then, the company's stock has soared even more on near-constant takeover speculation, given another boost by a Wall Street Journal report Wednesday afternoon that it has asked for initial offers.
But the prospect of competition for the firm's lead drug and the sheer audacity of its valuation combine to make a deal exceedingly unlikely at the price it probably wants. Interest is "lukewarm," according to the Journal, and it's likely to stay that way.