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North, is it related to this update from back in March?
https://www.prnewswire.com/news-releases/halozyme-provides-update-on-licensee-co-formulation-patent-hearing-in-europe-301772832.html
PD
Hi Chey,
Catalent seems to trade at a p/e almost double CDMO, or did prior to today. Any thoughts as to why?
PD
Go easy Stone. Maybe he needed to pay for gas . . .
I miss Frootie and his blaster. What was the price target? Like $158.49 or something?
PD
Protector, according to our last 10-K, Gilead was 16% of our revenue in 2021. So why wouldn’t they potentially send CDMO more business?
PD
Cubflyer
Feels like a prearranged buyer at 29.50. Maybe one of the index funds. I sold a little. Had a sell in at 29.55 all morning. Wouldn’t fill until I moved down to 29.49, and they came up and grabbed it.
IMO
PD
160,000 now. Is it meaningful yet? :)
108,000 shares now
Is this a stop loss grab to free up shares?
PD
But it has no info on the amount of money or shares they are registering that I could see. Not sure if it’s tied to the senior notes in the event of conversion or something else.
PD
What’s up with the blank registration statement filed today?
https://www.sec.gov/Archives/edgar/data/704562/000168316821002766/avid_s3asr.htm
PD
El, I’m no accountant. How will the redemption of the preferred, the new 125 million in senior notes, and the capital expended for the expansion impact the EPS?
PD
From HGEN's 10-Q. How much of this money is flowing to Avid?
"Research and development expenses increased by $59.2 million from $0.7 million for the three months ended March 31, 2020 to $59.9 million for the three months ended March 31, 2021. The increase is primarily due to a $7.5 million increase in clinical trial expenses and a $51.4 million increase in lenzilumab manufacturing costs related to the trial in COVID-19, which began in May 2020. We expect our development costs will continue to increase throughout 2021 as a result of securing additional manufacturing capacity, the production of lenzilumab for commercial use and preparation of the materials necessary to file for an EUA in the U.S. and for conditional approval in the UK and Europe. In addition, we anticipate clinical trial costs to increase due to the enrollment of patients in the planned clinical trials."
"We have entered into agreements with several CMOs to manufacture bulk drug substance (“BDS”) and fill/finish/drug product (“DP”) for our lenzilumab clinical trial activities in COVID-19 as well as to manufacture BDS and DP for a potential launch of lenzilumab in anticipation of an EUA in 2021. We have also entered into agreements for packaging of the drug. These agreements represent large commitments, including upfront amounts prior to commencement of manufacturing and progress payments through the course of the manufacturing process and include payments for technology transfer. As of March 31, 2021, we estimate that our commitments remaining to be incurred during 2021 will amount to approximately $169 million. The agreements contain customary cancellation clauses."
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001293310/000121465921005311/h51021110q.htm#notes
PD
Yes, time to panic. 12 shares sold at $19. Someone must know something.
LOL
PD
Nice!
How is your $4 PT coming? I see we are still above $10.
Manipulation much? They shorted it down to make the exchange price of $21 look better. What a joke.
IMO
PD
West,
Maybe they are looking at acquiring a bolt on acquisition like fill and finish. Maybe they are going to acquire Argonaut?
Seems like a lot to raise on the heels of the share sale that raised 30 million. Total expansion is $70 million using the high end of $55 million for Phase 2 and the stated $15 million for Phase 1.
If they net $140 million (roughly) after fees from the convertible, plus the $30 million prior raise, plus the money they are making, that is still $50-60 million after they take out the preferred and pay for expansion.
What do they plan to use it for? Only time will tell. Good luck to us all!!
IMO
PD
I don’t follow HALO that closely, but it looks like they also missed on earnings the day after announcing the convertible. CDMO beat and raised guidance.
IMO
PD
They will also no longer have 1.7 million (approximate) preferred shares and no more quarterly dividend payment. That goes straight to the bottom line with our tax COLs.
IMO
PD
I wonder if they are going to the same private investors that HALO is using for their convertible notes.
https://www.prnewswire.com/news-releases/halozyme-therapeutics-inc-announces-pricing-of-private-offering-of-700-million-of-convertible-senior-notes-due-2027-301235183.html
PD
Remember when Cubflyer said we’d be sub-$4 and never see $10?
That aged well . . .
PD
Maybe Nick plans to buy a bunch of bitcoin . . .
Be interested to see how this all shakes out. Glad they are getting rid of the preferred.
PD
I’m sure you’ll put it right back where it was when you’re done, and then explain to all of us what you did and why it didn’t make a difference.
Take care CP.
PD
And right on cue, price into the 17s.
Thanks HL! Been here for 23 years. Hard to believe!
Happy holidays!
PD
I was enjoying today until you brought that up. I can still remember the details and the moments of black Monday and reading that retraction. And the nausea.
We’ve come quite a ways since then.
Best,
PD
West, I find it very strange that CDMO has not PR’d a new customer since August 26. I thought there was a shortage of manufacturing available. Did they just stop updating new customers, or do we not have any?
PD
Maybe someone liked the fireside chat yesterday?
From Seeking Alpha transcript:
“Nick Green
A little early to give you a strategy for going forward. We're actually embarking on that process as we speak and as soon as we finish the calls with investors following this call. So certainly in terms of what I've seen, I think there's plenty of opportunity.”
This muted response is disappointing so far. At least no gap to fill.
PD
What’s with the wide bid/ask spreads?
PD
We need to get rid of the preferred. About $1.1 million every quarter.
IMO
PD
I’m sure Ronin lost tens of millions of dollars betting on the wrong side of the VIX to get massive margin calls forcing the liquidation of their portfolio so they could vanish into thin air to cover their activities with PPHM/CDMO.
IMO
PD
I doubt they are taking fees in OGEN stock. Cash for services is still cash . . . It’s nice to have big contracts, but more little contracts are better than idle capacity.
IMO
PD
Hopefully enough to pay one quarterly dividend on CDMOP . . .
PD
Looks like you did
I hope the 7 shares that traded AH at 7.89 is a sign of where they intend to take it tomorrow.
PD