Replies to post #186183 on Biotech Values

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ZIOP > Streetsweeper takes a swipe...

http://www.thestreetsweeper.org/undersurveillance/Ziopharm_Oncology__5_Potential_Downsides_To_Its_New_Deal

Shares of Boston, Mass.-based Ziopharm Oncology (ZIOP) ripped some 54 percent within hours this week on a positive news story – a story full of holes and investor risks.

The stock raced from $5.74 up to $9.50 following the announcement that ZIOP and its partner Intrexon Corp. (XON) signed a licensing agreement with the Texas cancer center, MD Anderson.

Though the share price has fallen, the excitement delivered a roughly $900 million valuation to a company with a $362 million deficit and no product.

The deal trades licensing rights for MD Anderson’s non-approved cancer technology for $100 million worth of shares altogether from ZIOP and XON. ZIOP has also committed to paying $15 million to $20 million yearly to the cancer center for research and development for three years, though the press release is fuzzy. ZIOP must pay the first $3.75 million within two months.

Ominous details surround ZIOP’s dollar-and-dilution deal, as well as ZIOP itself. Here are the top five reasons why TheStreetSweeper dislikes this deal and sees loads of downside ahead: