Screening through various charts going back some years, what can I see. Wild swings – from a stage of euphoria to a stage of frustration and then back up again. Prices move in cycles and in hindsight all can be explained, but unfortunately not before.
There are so many examples that it would fill pages to present them but I am sure, everybody will know some names
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DECN goes through cycles as well and if all would have gone according to the script, all those witnessed waves within the last 2 years would not have happened, but then for this, nobody can blame DECN – they did actually more, than what could have been expected by a small company. While other small companies would have given up, they fought. The blame is given to J&J who does what it does best under such circumstances, using their war-chest to try the legal system up to the limit.
Being involved in a patent-infringement case, has brought bigger companies to their knees than DECN, but DECN was not brought down to their knees and this thanks to the management who was able to attract not only one of the best legal brain for this case, but then as well funders, willing to go all the way with the company. That this would not come in cheap is understood. I will not even try and start to present the costs of those 2.5 lost years but it should be clear, that without dilution it would not have worked, as money is not for free and never was. But then, when presenting the bill to J&J it will not only cover those lost years it will cover much much more and if a judge will see it the same way, then DECN should be compensated plenty enough to make this up.
Where is then the difference between DECN and a Biotech Company that get’s financed with dilution to pass all those trials from phase 1 to phase 3? None. Those investing in Biotechs know, that the risk-reward ratio is 80 to 20, however those 20 % are enough to cover the risk by far, due to the explosive moves such stocks then have once they have cleared trial 3. Either they are taken out by the biggies or survive and grow as independent company. Nobody complains in this sector about the dilution as without dilution no Bio Company would ever go over trial 1.
With DECN it is no different. When they got sued for infringing a patent, the risk/reward ratio was certainly not in favour of DECN on the contrary. But in this case it was not about clinical trial 1 up to 3, it was all about surviving the next court decision. And survive they did as J&J lost across the board in the courts and is now trying the last stand, which only will increase the amount they finally will have to pay to DECN.
To make it clear to all new-comers: It was J&J who offered DECN a settlement amount not visa-versa. That DECN refused to accept the offered amount speaks for itself but then it is as well a clear signal: J&J admits, that they lost as only the loser offers for settlement, never the winner and from this point of view – it ain’t over until the fat lady sings.
Like in life: How many ugly duckling became later the darling of everybody? Will be interesting to see, how long it takes that DECN will reach the same status. At least some big funders see beyond the ugly duckling status and as always, those who take the risk deserve to be rewarded at the end. But this is nothing knew: The stockmarket is the place where "Schadenfreude" and "Celebration" go Hand in Hand.
