Biotech Values

[mcbio]

Re: ARYX committed equity financing facility

Looks like they are finding it hard to convince a partner

I don't view just the establishment of a financing facility such as this as unduly bearish necessarily. What would be bearish for me would be if they actually do sell shares under this facility. Again, this is just the establishment of the facility allowing them to sell shares.

Notwithstanding, I would view the establishment of the facility as a sign that no partner is about to immediately partner with them for budiodarone. If they were, then I don't think there would be a need to establish the facility. However, I don't think that the establishment of the financing facility is a sign that precludes any partnership from being done by year-end or earlier.

The other point I would make is that they did have to issue 114,200 shares to establish the financing facility. I would have preferred that they didn't have to dilute shares at all just to establish the facility, but would note that the dilution is less than a half of a percent.