BTH - I've already addressed this once for you, but, I'll give it another try.
Your characterization of Ariad's secondary offerings as dilutions is misleading. Secondary offerings are only dilutions if there is no equivalnet value gained for the shares that were sold. If you look at the increase in the pps over the time in Ariad, it is plain to see that the market sees the value derived from those secondary offerings. By issuing the secondaries, Ariad was able to bring its drugs to greater levels of maturity, thereby, increasing the value of the company and increasing shareholder value.
Secondary offerings in biotech stocks buy time for drugs to be brought to maturity - they are an essential aspect of modern biotech financing. The alternative for HB was to prematurely partner away ownership of a powerful new drug - 534. So, if the secondary allows Ariad to reach important milestones with the drugs in the pipeline faster than could be achieved by not issuing the stock while also retaining more value for shareholders than could be done with partnering than it looks like the right move. HB's choice to issue a secondary was the wiser choice.
No matter how often you shout dilution BTH, it doesn't make it more informative. It certainly doesn't give it any validity. By the way, BTH, you have never indicated any real alternative to the secondary offerings.
AI
