The following are clearly stated in the last ER (Q3/2017):
- The VISTA long-term safety study in pediatric GHD (300 participants) will conclude at the end of October.
- Further clinical development of somavaratan in AGHD (30 participatns) is on hold.
- J14VR5 Phase 3 study in Japan is being discontinued
- Completed reduction in work force of approximately two thirds and further cost-cutting measures underway to preserve cash.
- Select members of management team retained to leverage clinical, regulatory, and commercial expertise in the evaluation of somavaratan and efforts to identify opportunities to diversify the Versartis pipeline
Cowen engaged to assist in evaluating possible strategic transactions that could maximize the company's expertise and resources
Management is obviously working hard on winding down business operation to perserve cash, so my highest estimate of the max cash burn in the last 3 months (Q4/2017) could be 1/3 of the average cash burn in the last 4 quarters, or around $30M/3 = $10M or $0.30/share.
So in case of the worst scenario (merger/acquisition not happen), they still have $2.19/share cash for shareholder distribution.
If you really believe that the stock being traded at this level is way overvalued, then you should short the stock, post a screen dump of the transactions and for every share you short I'm going to buy 3 shares (as long as the stock price is still under $1.90), and I will do the same by posting the screen dump of my transactions. Please do so as soon as possible to make this happen.
