Poll Closed - 63% Oppose Merger

The unscientific SI poll on whether or not Sirtris should sell the company to GlaxoSmithKline has closed. Of the 44 who voted, 63% where against the merger. It is interesting to note that in such a difficult equity market, a solid majority of those polled would rather forego the sure thing of an 84% premium, in order to take a gamble on the long term prospects of the sirtuin platform.

From the Sirtuin Investor perspective, after reading the entire offer document, it became very clear that Sirtris management did a very thorough job in shopping the company around after Glaxo expressed interest in an acquisition. Up until this point, Sirtris had been seeking a smaller equity investment from several big Pharma companies at a price of $25 per share. After the overture by Glaxo to acquire the entire company, Sirtris hired JP Morgan to entertain other potential offers and provide a fairness opinion. No other suitors emerged and Sirtris did a fine job in procuring a $22.50 cash tender offer price at a time when the shares in the company were selling in the $12 range. An amazing thing about the offer was how well kept a secret it was. There was absolutely no indication in the stock price or volume that any indication of the negotiations had leaked out. Although I've criticized senior management for insider sales at such an early stage of development of the technology, the insider sales continued throughout the period of negotiations at prices well below the final tender offer price.

As a shareholder, as we count down to the ending of Sirtris as an independent public company, I want to congratulate and thank Sirtis senior management for their efforts and wish them success in capitalizing on the amazing potential of the sirtuin platform. As the Sirtuin Investor, I've partially lost my reason for existence with the elimination of the only pure play sirtuin investment available to the public. Now what do I DO?? I'll either need to expand the scope of this blog or put it to rest. Stay tuned.