Biotech Values

[stockbettor]

OXGN market response

As a longtime OXGN investor my opinion is that the market did get it right. I have expected OXGN's share price to drop over the summer based on my doubts that they can secure a partnership until they can provide prospective partners with results from their avastin/zybrestat P2 trial. Results will not be available until year end. Today's deal obviously cannot change the timing of those results.

The deal does simplify what I thought was a byzantine joint venture structure with Symphony Capital. Symphony will now become a straight 44% shareholder of OXGN, and OXGN gains access to cash that was essentially locked up in the joint venture. The cash may allow OXGN to postpone a financing until after the year-end P2 results are out.