Replies to post #88555 on Biotech Values

[iwfal]

ZGEN dilutes shareholders again

ZGEN has been at 66-68M shares for almost 5 years. In biotechland that is forever.

I believe that what they are doing it trying to get enough cash to get them through a moderately worst case ramp for reco to self sustaining while being able to prosecute their pipeline (i.e. making this the last dillution for another 4.5 years). Personally I'd have preferred that they make this secondary 50% larger and keep more of their research staff.

[tony111]

rkrw,

You got me there. I was not happy about the offering. It suggests they are having troubles partnering IL-21.

[DewDiligence]

ZGEN prices public offering:

http://finance.yahoo.com/news/ZymoGenetics-Prices-Public-bw-245041974.html?x=0&.v=1

Assuming the underwriter’s 15% option is exercised in full, 16.1M shares will be sold at $6.00/sh for net proceeds of $90.8M after deducting the 6% underwriter’s fee.

(In the unlikely event the underwriter’s option is not exercised, the offering will be 14M shares for net proceeds of $79M.)

The share price fell 10% today to end up near the offering price, which is a typical outcome.