Replies to post #95183 on Biotech Values

[DewDiligence]

IDIX Diluted Share Count for Valuation Purposes (revised):


The updated share count I use for valuation purposes is 78.9M.


After reviewing the options-related info in IDIX’s DEF14A filing for the 2009 annual meeting, I’m making a slight adjustment to the share count I use for valuation purposes. Of the 6.8M total options outstanding (including those not yet vested), I previously estimated that approximately 2.3M had an exercise price higher than $13 and hence could be excluded from the valuation arithmetic. Upon further analysis of the DEF14A, I now estimate that only 0.8M options have an exercise price higher than $13. (This calculation is imprecise because SEC filings show the exercise prices for only the options held by executive officers, not the options held by rank-and-file employees.)

Based on the new estimate, there are 6.0M consequential options outstanding. Adding these 6.0M options to the 72.9M basic shares outstanding (after the latest financing) gives the 78.9M figure highlighted in red above.