Big Pharma in this space are thinking 5-10 years down the road - at least. Gilead is under pressure as faced with declining sales and crop of R & D disappointments across multiple indications. They need to make a smart/winning acquisition that will also replace the HIV revenues lost to competitors and the coming wave of generic drug makers upon impending patent expirations. Be watchful of GILD's May 2nd 2017 1st Qtr revenues- Might not be pretty
Their is much more at play here than just the valuation of PRO-140 as part of combination therapy. It's long past time for new and novel therapy that actually delivers relief/care without nasty side-effects. It appears from early trial results ( and Tai-Med/Ibalizumab) that these biologics do just that. That's the argument at the bargaining table. We help you retain, steal and attract new clients --
As for dilution, it's obviously a necessary evil, the means to the end. As mentioned often, I think they'll use 40 million more shares ( spread out) at average of .70cts-.80cts and raise $30mil-$35mil for next 10-12 months. If the transcript from CC call is to be believed the combo enrollment will be completed no later than end of June and expect also to have at least 100 patients in mono enrolled.
Further I would expect to see the first GVHD patients ( 30/30) dosed in June and have first results fourteen weeks later- By end of September we could be in a very favorable position. t would be a huge mistake to stop the combo trial. Play it nice and straight with the FDA and follow protocol as directed.
People like Carracciolo, Burger, Mulholland, Kelly, A. Bruce Montgomery aren't use to losing. They get the job done and wouldn't be on board if they didn't see & like the possibilities-
I love my bet at 60cts. and believe we'll be purchased similar to YM Biosciences or see a milestone/licensing deal like the one Gilead recently did with Nimbus Apollo for $1.2 billion- Lots of ways this could go once the empirical data validates the prior findings-- Too much here to like not to stay on board
