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Message: following Hepalink a bit

I would not read too much into Hepalink's share price movements...although that move before Sept 30 was telling.

I think Hepalink has issues of their own.  First, the share price is expensive...An enterprise value of US$3.6 billion supported by only US$40 million in operating cash flow last year.  The company has been running up borrowings in the last 2 years, and is stuck with US$600 million net debt now.  

I think the Chinese market may have assumed that RVX would be sold by Hepalink within the next few months at a handsome valuation...and that may have supported the high EV.  That may explain why the fall in EV of Hepalink since Sept 28 is far more than the entire market cap of RVX.  

 

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