Biotech Values

[DewDiligence]

(PTLA)—For valuation of any stock, I count options and warrants that have realistically attainable exercise prices, but I do not count shares reserved for future awards to management-incentive plans. In a buyout, in-the-money options and warrants get cashed out, but shares reserved for incentive awards do not.

Thus, following the exercise of the underwriters’ option today (see next post), PTLA has approximately 38M diluted shares for valuation purposes.