|Scratch the small niche acquisition talk. Much more likely that GDT is talking to Cook about possible acquisition IMHO. Cook is in a number of lines that GDT probably does not want to play in, but GDT cannot afford to let the paclitaxel stent slip from their fingers. If the BSX/Cook/GDT dispute goes against GDT in June - then these talks would have to heat up quickly.|
By a rough back of envelope calculation GDT should be net debt free by Q3-Q4 2002. Borrowing capacity is plentiful, but Cook would obviously see the semi desperation in GDT's entreaties and command a nice premium. Nice premium equals dilution.
The stent news today is bad on two fronts: 1) I had held out a remote chance that Actinomycin D stent would work as it was an in house program that held higher margins. 2) The June BSX/Cook dispute looms very large.