Inspire crash costs Warburg Pincus $110M in paper loss

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Not unless they sell their Aspire shares. This is a 'paper loss', you do know what a 'paper loss' is, right? The loss is unrealized at this point in time. If WP sells their Aspire shares at a price per share that is still lower than the PPS of their cost basis, at that point in time they would then have a realized loss and possibly less cash to spend other places.
 






paper loss or no, that's a major ass pounding.

You can bet they're not happy. can you imagine what B&L stock would be worth right now, worse than when they bought it, and that's a fact.
 






It may also cause them to think about divesting themselves of health care plays (B&L being one) before the lose as much or more again. Not good for us. They're going to put a gun to Fred's head on this .
 












you don't even know. They put a lot more than 75 Million into inspire.

The initial trade was 75 Million at 5.35 a share as per previous links. That's 14 million shares. They had 22.9 Million shares on the day it crashed. They probably bought more on lows cost averaging down their per share price but you have to figure they have a lot more than 75 million in, even on absolute lows at $3 per share, that's another 25 Million.

You have to figure they were into the stock for at LEAST 100 Million, probably as much as 130 Million.

On Dec 31st the price was 8.4, on Jan 3rd it dropped to 3.4 , assuming that they are not the ones that sold off all of their stock and tanked the price, if they held on, they probably lost 20% of their own money. The bad news is, inspire has 1 more drug in the pipeline proclaria or something for dry eye. I think inspire stock is a black hole now, I was thinking of maybe buying it, but I don't think the company will survive. I think it will be bought out on the low.
Expect warburg to sink that ship real quick to get out what they can. For all we know, that huge drop was them selling off their shares....
 






news report said inspire agreed sell all of its stock accounting for 28% of the shares.
Did some quick math and it looks like that means they were still holding their 23 Million shares.

That means they didn't sell off share while stock was falling and they will cash out with about 116 million. Based on posts below. I don't think they are even getting out for what they put in. They may have turned a 20 % profit at absolute best base scenario, but those numbers are not good for the amount of time they were tied up with Inspire. May have even taken a 10% loss.

Expect inspire deal to leave a burning sensation in their eye about Ophthalmics.
Would not be surprised if deal for B&L looms on horizon.
 












I'm coming up with a little different math on this Inspire sale to Merck. Somebody check my numbers:

WP paid $75 million ($5.35 share) on July 18, 2007
WP sold $140 million ($5 a share * 28 million shares) on April 5, 2011

Gross Profit: $65 million in 4 years
 






your math is bad.

The initial purchase of 75 Mil was not their only investment. They purchased more along the way infusing the company with more cash.

Inspire stock did not split, therefore they can not sell same amount of stock for less than they bought it and double their money.

I can't find numbers to show what else they bought along the way, but we know how much they bought in the first round and how much they were holding at the end.

They did not do well. They probably escaped with a small profit by buying more stock when it was at lows of 3 and change.
 






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