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Posted On: 02/19/2019 9:05:38 PM
Post# of 72441
If we were $4/share we would just raise the $20-30 million we need to do phase 3 OM and go it alone by selling 5-8 million shares. Partners would know there is a feasible path to proceed without them.
At $0.15/share there is no way for us to raise $20-30 million without severely diluting the current shareholder base. Partners know this and deals will be less generous because we are desperate. It doesn't mean we will get horrendously screwed, but values will be less than they otherwise would be.
For example, if we were $4/share and B was worth what the Theravance deal was ($100M + $900M milestones), what would we get at $0.15/share? Probably something along the lines of $50M+$600M milestones. Not pennies on the dollar, but substantially less absent a real bidding war.
At $0.15/share there is no way for us to raise $20-30 million without severely diluting the current shareholder base. Partners know this and deals will be less generous because we are desperate. It doesn't mean we will get horrendously screwed, but values will be less than they otherwise would be.
For example, if we were $4/share and B was worth what the Theravance deal was ($100M + $900M milestones), what would we get at $0.15/share? Probably something along the lines of $50M+$600M milestones. Not pennies on the dollar, but substantially less absent a real bidding war.
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