In 2000, riding the wave of euphoria surrounding the human genome project, the UK's Oxford GlycoSciences PLC raised £150 million ($230 million) in one of the largest secondary offerings the European biotech market had ever seen [See Deal]. Three years on—in very different market circumstances--it was OGS' remaining cash that became central to the European biotech sector's first bidding war. Yet notwithstanding the group's £136 million war chest as of the end of 2002, OGS ultimately sold to UCB Celltech in late April 2003 for only £101.4 million [See Deal].
In current markets, it's not unusual to see biotech companies trading—and being sold—below cash. Yet given the interest in OGS—at...