Deep in the Heart of Texas Bioa Takeover? Major Shareholder Pushes for Value, Which Could Mean Takeout Down the Line

Once Texas Biotechnology Corp. (TBC) gets a product on the market, it will likely be an attractive takeout target, some analysts agreed. The Houston-based biopharmaceutical company, with a market cap of $140 million, lacks commercial experience to market its drugs, said Larry Feinberg, managing general partner of Oracle Partners, a 9% TBC shareholder. TBC should form an alliance with a more commercially experienced corporate partner, he said. He declined to name likely candidates. On May 7, Oracle filed a 13D voicing its concern over TBC’s strategic direction. The filing had a negligible effect on TBC’s stock, sending it down 12 cents to $3.88. At presstime, the trading price was $3.81.