Biotech Values

[tinkershaw]

however, if MNTA had an M118 partner in waiting, it would have made more sense to announce the partnership first and then raise money. Hence, I don’t think MNTA is raising money for M118, specifically.

It would make more sense to issue the offering after an M118 partnership regardless as the share price would supposebly be higher, and higher is better, no matter what the eventual purpose of the money will be used for.

Given that with mEnox MNTA should be largely self-funding for anything they reasonably might want to do, one has to be suspect of why now to raise money.

I have to give this one some more thought. After hours is not hammering the stock (yet) but it is down. A lawsuit is filed that is mostly relevant only after Teva starts to sell product in the U.S., and now a fund raising that makes more sense if MNTA's cash flow is crimped due to expected reduced revenues. As things stand at present, they are clearing a couple hundred mil per year in free cash flow. What does MNTA have to do that cannot be funded reasonably by this?

This is not a positive development, regardless, even if tEnox is not involved. MNTA should not need to have to raise cash at this point to execute on their business plan.

My experience with litigious companies like RMBS however does provide experience that $10s of millions of dollars may be paid in legal fees for the lawsuits MNTA is involved with. That burns cash, but nothing in comparison to 9 figures in free cash flow per year.

Tinker