Biotech Values

[biomaven0]

Everyone knew the company needed cash, and they got cash at a discount of only 2% to Tuesday’s closing price with no warrants.

There are hedge funds that short biotechs that need cash, hoping to cover at a discount in the offering and maybe clip some warrants in the process. So sometimes when their hopes are dashed you see short covering after the offering.

Strength after offerings has historically been a very good sign of a strong biotech market.

Peter