UPDATE: Bloom Burton Downgrades YM BioSciences to Hold Post Gilead Acquisition
Bloom Burton lowered its rating on YM BioSciences (NYSE: YMI) from Buy to Hold with a $2.95 price target.
Bloom Burton noted, "We are updating our price target to US$2.95 and rating to Hold after last week's announcement of the acquisition of YM by Gilead Sciences (NASDAQ: GILD). … The deal is expected to close in Q1 2013. The deal contains customary non-solicit provisions, but under certain circumstances, YM can terminate the arrangement and accept an unsolicited superior proposal. Considering YM stated it has conducted a robust process for out-licensing the asset, we expect the deal to close with no other bidders coming to the table."
YM BioSciences closed at $2.89 on Friday.
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