A general question for any who are familiar with any ATRS anti-takeover provisions, as well as how this game works with small cap biotechs – and I apologize in advance for my ignorance:
Suppose the share price drops another $0.75 to $1 in the next month – as it has basically done this month from $3 to $2/share on fairly high volume – and we approach $1 to $1.25/share. And set aside why it has happened – manipulation through naked short selling, some big institutional holders deciding they want to unload, basic change in market sentiment about ATRS’ business model (whether justified or unjustified), etc. - just suppose the falling knife continues to fall.
Is there anything to prevent Teva or Pfizer or someone else from deciding that this is dirt cheap for acquiring ATRS and offering, say, a 50% premium to the then current share price to acquire the company at under $2/share? Any idea what the likely response would be to such an offer?
As a significant and long-term shareholder, I fully agree this would be a travesty. But is there anything to prevent it?
And why would Teva or Pfizer or someone else NOT be thinking about acquiring ATRS at these ridiculously low prices? ATRS is not going bankrupt anytime soon, and if in the upcoming Q2 report conference call they re-iterate guidance at $200 million/year by 2017 or 2018 for Otrexup, after having factored Medac into the picture, and particularly if they again project breakeven by Q4 of 2014, then the share price by any logical standard should begin to pop back up. So it would seem we are in about the best possible share price environment to encourage a buyout. So why is there seemingly no interest by big pharma partners of ATRS – who are intimately familiar with the ATRS IP portfolio and experience in getting SQ/drug combos through the FDA - in acquiring ATRS’ excellent technology on the cheap at this time?
I’m just trying to get a sense of the worst case scenario from the perspective of a long-term significant shareholder – which is – could someone come in at this time and pickup the company for a song from under our noses before ATRS has a chance to show significantly increasing revenues, maybe some partnership deals coming through, etc.?
Also – when will institutional holdings be updated so we can see if there has been significant institutional selling lately?
Thanks!
