Biotech Values

[DewDiligence]

RDEA raised $30.6M in a PIPE announced this morning. (They evidently didn’t have a shelf registration, which would’ve allowed registered shares to be issued.)

The terms: 2.74M units @$11.17, where each unit consists of 1 share and 0.25 warrants exercisable at $11.14 between Jun 2009 and Dec 2013. The warrants clearly make this a below-market deal, but it’s nonetheless impressive that RDEA could raise this much money on these terms in this market.

http://finance.yahoo.com/news/Ardea-Biosciences-Announces-bw-13865959.html

The PIPE increases the fully-diluted share count by 20%, from 17.3M to 20.7M.

RDEA had $29.5M in cash as of 9/30/08 (#msg-33555492) and they brought in $8M from a loan in November (#msg-33555914). Today’s PIPE thus gives RDEA a cash balance of about $68M less whatever has been burned during 4Q08.