They will be bought out. This drug will be approved sooner or later (probably later) and it will be cheaper to buyout than to. You really cannot buy on Cash value right now because of the expensive and very long trials to come. BUT, you could buy for either the long term hold or buy for the anticipation of a buyout of $8.00 a share.
You are seeing a lot of selling due to the market is easy money right now. Most other pharma's are up and the sentiment is try and get as much as you can today...the buy and wait mentality has been thrown out the window with the overall bull market.
If this goes into the $1,s this would be a very good buy. It is a good buy right now. We are in 5 Bag Territory in about three years.
I am considering that they are preparing for another Phase III trial. They should be because it is evident that the FDA wants another trial changing the "Crossovers". This cause great amount of confusion, but I personally believe that Tivo is better than AVEO can state it is from the stats because of the foolish trial design.
Hopefully AVEO will not mislead investors and portray that they have this wonderful relationship with the FDA, when there were major communication break downs. You don't do this with the FDA and then File a NDA, but on the other hand the FDA shouldn't of accepted the NDA if they were going to force another trial. The FDA could have prevented this debacle by doing this and AVEO could of saved about a years worth of time by listening to the FDA's advice. So, I am sensing some contention between the two. Hopefully, Aveo will listen to EVERYTHING the FDA has to say, because I think they have the goods, but may have dissed the FDA and now the FDA will dis them in a round about way by dishing out the ole CRL that says "Listen the First Time and Do Another Confirmatory Trial" and this time do so we ALL can understand EXACTLY how well Tivozanib works. The FDA wants to know without any Doubt the Measurements of a drug.