Biotech Values

[Jonathan Robinson]

Thanks Dew. FWIW, and bringing this back on topic, these types of issues are why ELN and SEPR both collapsed in stock price so much back in 2001/2002. Also, why ELN collapsed post-Tsyabri. Folks usually understate the risk of debt in capital structures until the debt hits. Interesting that ELN is out with refi HY debt right now. Be interested to see pricing (guess barely in single digits for coupon) but the debt is taking event risk of severe order - gets paid off in limited PML and does not otherwise.

I think you made a comment a few days ago about companies not knowing what they were doing issuing CBs. That is my view too. It is equity in good times and has all the bad features of debt in bad times.

Jon