Don't really understand how dilution is good. In this case it's irrelevant though. The big picture is getting the drug approved. Having a good cash position is much more important. Good results from phase III and FDA approval would pop this stock where dilution is a very minor concern. Look at the big picture. The stock is selling for about 120% of it's cash position. No brainer.
On March 8th, the company stated they have adequate cash needs to last through 2014. A week later, the company announced a secondary stock offering at a 31% discount to the closing price. Even the investment banks who faced bankruptcy possibilities in 2008 didn't need to price their offerings at such a discount during the worst bear market ever recorded.
These actions by OGXI management are highly suspicious. The company just received a chunk of cash from TEVA. So, considering they have adequate cash on hand and the analysts at the investment banks that did the deal have 12 month price targets on OGXI of about $35-$42, why would OGXI management or its bankers feel that this is right time to raise capital? The misleading statements by management in their earnings press release last week are fraudulent at worst, credibility destroying at the very least. We can expect a class action lawsuit to be filed next week for sure. The only thing that can justify this blatant destruction of shareholder value is if the company acquires a highly accretive business in the next few months. One can only hope that management is that competent.