If I am correct, the lenders shorted the stock, helping that equity decline. No need to worry about the lenders. They know what they are doing.
Ariad's option buys are way under water, too. But so are the warrants. Looks like an opportunity to do something, if they truly believe those warrants are going to be exercised. Would cost them about $12-15mm to hedge, less than $1/share warrant.
If we see any big option buys strike price around $12, something is up.
The type of disaster at Ariad is far more uncommon than common. Ariad had the golden goose, they had it. They cut off its wings. Learning on the job. They barely remembered the lesson with '113.
The staunch defense of HB and the BoD is perplexing. Is the job hard? Yes. But many other biotechs have done far better than Ariad. Did they all have the same challenges, FDA, trials, science? Yes. Even in oncology. 20 biotechs have been bought out since 2012 for $B, about 10 for more than $3.5B, about our high mkt. cap. 20 months ago. Going alone, we won't see this for 3-4 years, possibly. The CEOs/BoD all did a better job that our leaders. Their science was no better, was it? Leadership makes all the difference. We can do better, could have done better.
Some notables:
Aqrd Buyer Amt All since 2012
GPRO HOLX $3.7B
QCOR MNK $5.6B
WCRX ACT $8.5B
AMLN BMY u$7.0B
KCI Apax Prts $6.3B
HGSI GSK $3.0B
ELN PRGO $6.7B
ONXX AMGN $9.7B
MRX VRX $2.6B
SNTS SLXP $2.6B
VPHM Shire $4.2B
AKGZF Bayer $2.9B
GENZ SNY v$20.1
IDIX MRK $3.85
MAKO SYK $1.65
Feel sick yet?
