Ocera Therapeutics fka OCRX

[longx]

at the current share price of $1.69, you can buy the possibility of making $2.58 for 17 cents. sounds like a good deal.

Yes, totally agree with you on this. The possibility for achieving the first two milestones (a) and (b) is very high, probably over 90%, and we will receive the payment of $0.90/share (almost 400% gain from the original $0.17 investment) by the end of 2018 or early 2019 after the enrollment of the very first patient in the clinical trial (see the text from the SEC filing attached below). The rest of the payment ($1.90/share) is simply a bonus, and I don't really care much about it; if we can receive it that would be awesome! Otherwise, I'm very happy with the 400% gain from the first two milestones.

Also, given the very low amount of breakup-fee $1.68M, there is the possibility of receiving counter higher bids in the upcoming weeks.

From the filing document:

* “Milestone Payment” means, as applicable, (a) with respect to achieving the IV Milestone, an aggregate amount equal to $10,000,000, (b) with respect to achieving the Oral Milestone, an aggregate amount equal to $15,000,000 and (c) with respect to achieving the Product Sales Milestone, an aggregate amount equal to $50,000,000, in each case as may be reduced, as applicable in accordance with Section 5.18 of the Merger Agreement, by the Closing Shortfall or Measurement Date Shortfall, if any.
* “Milestone Payment Date” means, (a) with respect to a Milestone Payment in connection with the IV Milestone and Oral Milestone, the date that is no later than sixty (60) days following the date of the achievement of the corresponding Milestone, and (b) with respect to the Milestone Payment in connection with the Product Sales Milestone, the date that is no later than sixty (60) days following the final determination of the Product Sales Statement reporting achievement of such Milestone.
(a) “IV Milestone” means the enrollment of the first patient in a Phase 3 Clinical Trial of an intravenous formulation of the Product by the Company, any of its Affiliates or their respective licensee or sublicensee with respect to rights to develop or commercialize the Product.
(b) “Oral Milestone” means the enrollment of the first patient in a Phase 3 Clinical Trial of an oral formulation of the Product by the Company, any of its Affiliates or their respective licensee or sublicensee with respect to rights to develop or commercialize the Product.
(c) “Product Sales Milestone” means the first occurrence of the achievement of cumulative Product Sales in excess of $500,000,000, by any Selling Entity or any combination thereof.
* “Breakup Fee” means $1,680,000.