BOSTON, March 12 (Reuters) – Gilead Sciences Inc (GILD.O) said on Thursday it has agreed to acquire CV Therapeutics Inc (CVTX.O) for about $1.4 billion, topping an earlier offer from Japan’s Astellas Pharma Inc (4503.T) and sending CV’s shares up 28 percent in premarket trading.
Foster City, California-based Gilead, which makes the HIV drugs Truvada, Viread and Atriplia, said it has signed a definitive agreement to acquire CV Therapeutics — which makes the cardiovascular drug Ranexa — for $20 a share in cash.
via UPDATE 1-Gilead tops Astellas offer for CV …

I got up very early today so I could shuffle some deck chairs around on the Titanic, otherwise known as my portfolio. FWIW which is zero, I sold half of my largest position

This has been a great week in the markets for the discretionary trust and super fund that I manage. Netflix, CV Therapeutics and now Biota have all had strong moves due to earnings, takeover and $18 Million Relenza royalties for Biota.

$1B wasn’t enough to get the CVTX board thinking about selling, but I sure find it tempting.

Summary
CV Therapeutics, Inc. (CVTX) is in a great position. Excellent balance sheet with enough cash to see them through to profitability. Four revenue streams in 2009 should get them close to profitable in Q4 2009 or early 2010. The FDA first line approval for Ranexa will see an acceleration of growth in US sales. Ranexa’s current market share in US is less than 1% so there’s significant possible upside. As they continue to increase sales and head for profitability more analysts and investors will pay attention to CVTX. Possible catalyst …

The loss is narrowing and Ranexa revenues continue to show strong growth. Simplistically, if Ranexa sales grow 15% sequentially, they should hit profitability around Q3 2009. They achieved 19% this quarter and over the last eight quarters have averaged 18% sequential growth in Ranexa sales. With the label expansion and European sales which received approval in August 15% sequential growth should be attainable.

CVTX Looks like good value to me at the moment. An OK balance sheet with some possible upside and no need for cash, four revenue sources, three pending FDA label expansions and a value on Ranexa of only $325Mish.