Humanigen Inc (HGENQ)

[cowtown jay]

Third quarter cash burn was higher than what some investors were expecting. But, the FDA took 104 days to announce their Decline determination. Management could not very well taper production when they were expecting an EUA approval. There were only three weeks left in the Third Quarter before the FDA finally announced their decision.

Compelling evidence that management was expecting approval is shown by the fact that Humanigen did not sell a single share of what they had available to sell by resuming the ATM, until after we were Declined. But being deprived of a revenue source, they were forced to dilute us for less than half of the proceeds they would have generated if they had sold shares before the EUA Decline.

On the other hand, resuming the Controlled Equity Offering also reflects that Humanigen management astutely had established a contingency plan should the FDA ignore our proven efficacy trial results, let alone the updated results that had been communicated to the FDA. More safety data is a bullshit excuse for the FDA. A p value of .0009, in an interim review of a much larger trial, would have prompted the DSMB to halt the trial, and recommend the FDA's approval.