Thanks Aiming. Pheew, saved from the gulag, that was a close one! My big mouth will be my undoing yet.
It looks like the Democrat's big victory isn't sitting too well with the Pharma sector, which gapped down big yesterday, and is down again today. The US is where Big Pharma makes most of its profits (by far), so some of that may be in jeopardy with Hillary and Ted Kennedy back in control. Perhaps the drug companies will now be forced to innovate more, and take a chance on new platforms instead of relying on the safer "me-too" drug approach. Well, maybe.
Concerning the timing of the financing, Dr. Stoll said cash will be approx $9-10 mil at year end. One question is whether to wait for the new tox data, or else just do the PIPE prior to that. In the R+R presentation, he said that the physical part of the new tox studies is completed and they are in data analysis. That being the case, he should have some preliminary idea of the results by year end, so perhaps he'll just wait a couple more months before pulling the trigger on the PIPE. In the recent conf call, he said that the complete package of data should be submitted to the FDA by the end of Q1-07 for their evaluation, with their decision on dosing liberalization coming after that. I doubt Stoll can afford to wait until April/May to do the financing, so I'm figuring it'll happen between now and January.
Another question is how much money to raise. Figuring the PIPE goes through at $1.50 (oh, the humanity), it'll take a jaw dropping 10 million shares to raise a paltry $15 mil.
Another approach would be to raise say only $10 mil now at $1.50, in hopes of being able to get the rest later on better terms. Pretty depressing, but the alternatives are limited - do an N.Amer Neurodegenerative deal with Organon or a BP, or sell the company outright. The Organon idea might not be so bad, particularly if Cortex is able to carve out ADHD and some orphans.
