Biotech Values

[akasidney86]

Dew, I won't take your bet because I don't like betting against my own interests. However, and your esteemed opinion notwithstanding, I continue to not understand this stock sale. If CW were half as confident as you are, he won't dream of doing this now. Not only are they, compared to 6 months ago, wallowing in cash, but if they really needed (as opposed to wanted) to raise a bundle of cash for some unspecified project without monetizing future income, they would be far better served to wait another 6 months until the t-enox overhang diminished and get a much better price for thier shares and raise far more against less dilution. Why the hurry? What's the new pressure for this cash? What's changed? Why, if a good reason exists for the need to raise cash now, does no one have a clue what that use might be?

The argument that the underwriting proves that other, smarter, wealthier and better informed people are confident that a TEVA launch isn't eminent is also, at least to me, not convincing. Smart, well-informed and wealthy people make stupid decisions every day. The argument that the patent suit was a part of the stock sale strategy also, to me, rings hollow. Indeed, it was you and Blade who were the principal water carriers for the idea that that was aimed at Teva shareholders and management... and has little merit otherwise.... but now it's morphed into a condition of the underwriters to protect their purchase?

All up, color me hopeful, but unconvinced.