Replies to post #251620 on Biotech Values

[WorstLuck]

The surprise to me is how fast and deep the drop has been after the 100mm secondary.

Bingo.

Stocks break the secondary offering price often enough. Stocks sometimes fall precipitously after offerings, RVNC had a Nov 2015 offering and it took around 3 months for the stock price to be cut in half, but it had stayed at a price consistent with the offering into January 2016. Many other stocks have done something along those lines.

What's different here is that price only stayed around the offering level for less than two weeks, and came close to a 50% haircut in less than two months.

would think the book runner and the subscribers did their due diligence

Diligence for the book runner is whether or not they can move the offering. They did move it. Diligence for the buyers varies from one to the next.

I'm going to leave here something I saw on X that is interesting:

@choffstein "Instead of seeing something and immediately saying, 'the market is wrong,' I begin with the assumption that the market is right and I’m the one who is missing something."