Replies to post #106338 on Biotech Values

[DewDiligence]

ANDS completes financing of 13.8M shares @$1.80:

http://finance.yahoo.com/news/Anadys-Pharmaceuticals-Inc-prnews-2916760922.html?x=0&.v=1

Assuming the underwriter’s overallotment option of 2.1M shares is exercised, there will be 15.9M new shares in all. ANDS had 29.4M* basic shares outstanding prior to the financing, so this deal incurs an expansion of more than 50% in the share count.

mcbio and I have been critical of ANDS’ management’s pump & dump style (#msg-52795076), and skeptical of its purportedly best-in-class HCV non-nuke (#msg-50635544). Today’s financing deal does nothing to change that assessment.

*ANDS has about 7M additional shares on a fully-diluted basis, but many are from options that are far out of the money and don’t figure prominently in a valuation analysis.