Ariad Pharmaceuticals Inc fka ARIA

[piggerpig]

This dilution is straight out of the INCY playbook:
They did a big dilution at 6-7 a month or two before they announced a very big partnership for ex-US rights to their JAK inhibitor. They got huge upfront payment, so in hindsight the dilution was very disheartning to me. However, they claimed that they needed the dilution to have a strong bargning position for the partnership talks. And, needless to say the stock today is much much higher than it was then (however it woould be even higher without the dilution).
A patnership with NVS for ex-us rights to P on terms similar to INCY's would be very very good.
From a high level, I think Biotech CEOs are much more reluctent to finance R&D through debt then they used to, and for a good reason. We saw what happened to the highly indebted Bios in 2008....