The trials they are pursuing first are the mid-stage less
The trials they are pursuing first are the mid-stage less expensive trials to develop the drugs for different indications, formulations, etc. I agree with this strategy. It preserves the shelf and is financially prudent.
But at some point, if successful, they will need to pursue a phase 3 - or tread water. If you think an FDA acceptable phase 3 can be done on the cheap, or even under say $20M, you are simply incorrect. This is particularly true if the drugs mid-stage trials were open label for poc purposes.
That is reality. That is why they need a partnership. Simple. They need a partnership to advance beyond phase 2. Can't be clearer.
I believe they will land that deal based on the trial data, market potential and the manner in which they are pursuing such a deal.
As for the shelf; A partnership should keep it on the shelf. If it is used for financing a late-stage trial that has sound prospects for success, dilution is not a bad deal for shareholders. But you tell me. . . $100M market cap and they unload an additional $46M in stock over a say a year. What would that do to the stock price until those phase 3 results are in? This is pretty basic stuff.
BTW does anyone believe that these posts, by people you do not know, actually impact stock price? If you are looking at small biotechs, these boards are nice venues to occasionally cull sentiment when news develops. But I don't believe for a minute that IHUB or Yahoo posts affect prices. My advise would be that if you are scared or plunge in due an anonymous poster, stay out of the market entirely.
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