This strikes me as a signal that they’re not looking to a buyout anytime soon. Others on this forum have asserted/assumed a buyout is coming or imminent. Granted, I don’t know this industry well, so I might be wrong and I welcome clarification on where I’m wrong or missing something. Just trying to understand the dynamics here.
They’ve taken on a funding partner for a sizable line of credit to develop Orladeyo and BCRX. From this write up, it looks like there’s a permanent royalty structure in place. They’ve also been adding staff like crazy over the past two quarters. Add to this, I get the impression from Stonehouse on investor calls and conferences that he and everyone else are excited about this transition to a “big boy” pharmaceutical from their status as just an R&D company. All of this suggests to me that they’re not banking on/hoping for a buyout. I assume the Pfizers and Mercks of the world would be interested in their current lineup. And those companies have strong cash positions, not to mention production capacities, partnerships, etc. I don’t get the impression BC lacks for buyout opportunities with what they’ve got at present, especially in light of the recent PDUFA.
Granted, this might just be them trying to grow and stabilize the company for a better buyout price at some future point. I’m not convinced of this, but it’s a distinct possibility. However, even that approach isn’t likely to result in a buyout especially soon. I think they need some track record of established and growing sales, plus real traction on the 9930 research. I’d guess we’re looking at a little over a year before that’s likely to materialize.
Again, I’m a noob in this sector so I welcome any disagreements and insight to the contrary.
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