As a longtime OXGN investor my opinion is that the market did get it right. I have expected OXGN's share price to drop over the summer based on my doubts that they can secure a partnership until they can provide prospective partners with results from their avastin/zybrestat P2 trial. Results will not be available until year end. Today's deal obviously cannot change the timing of those results.
The deal does simplify what I thought was a byzantine joint venture structure with Symphony Capital. Symphony will now become a straight 44% shareholder of OXGN, and OXGN gains access to cash that was essentially locked up in the joint venture. The cash may allow OXGN to postpone a financing until after the year-end P2 results are out.
OXGN – The market response reflected the fact that it was a favourable dilution but, as stockbettor said, it also indicated that a partnership is not going to happen next week.. Since "the market" is very short-sighted not enough investor/traders found it worthwhile jumping on the "oxgn train" at this moment. I expect to see a gradual accumulation of oxgn by those who understand the huge potential of the VDA technology and knows that Oxigene is close to signing a good partnering deal.
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