Biotech Values

[biopearl]

Dew, I am curious as to the logic of Geron issuing new stock at 4.00 today (ran to about 5.50) knowing that the Mayo Clinic would be presenting full data on 40 Patients with myelofibrosis some time in the near future (Dr. Tefferi of Mayo did present at the last ASH 22 patients per recent posts). If the upcoming data is as impressive as intimated and will be used to design a new phase II study in MF why not wait for the data and the anticipated stock run up to issue the new stock at a higher price? Usually when new stock is issued for less than the market price my limited (unpleasant) experience is that the stock usually falls to the level of the issuing price. Clearly not the case here. Anyway your thoughts as to why they didn't wait would be appreciated. On the surface it would mean to me they thought the future data might adversely effect the stock price. They did have over 50 million in cash so I think could have afforded to wait. I suppose they might have just wanted to get started on the new multicenter Phase II study ASAP but in so doing gave up the possibility of issuing at a substantially higher lever. TIA bp