Biotech Values

[mcbio]

Re: VRUS share offering

That isn't that much. I got believe that 100 share AH trade is not reflective of how much the stock will move tomorrow. I guess that is about a half years burn and given that most CEO's are going to drop to a couple months (especially after '08/'09) I can't imagine it was a big surprise. I think it sets them up to do a deal mid '10 if one of their compounds does well in development (not sure but I would guess that may coincide well with when trial results are expected).

It is a small offering, relative to shares outstanding (~28 million). This equates to roughly a 1.7 million share offering taking into account a full $34M raise, or about a 6% increase in shares outstanding. So, I agree that it's not really a big deal.

As far as valuation, I am still surprised at the gap in valuation between VRUS and IDIX, which to me are otherwise roughly comparable companies in terms of drugs under development and stage of development.