They gave their investment bankers the deal of the year.
I will increase my position under $13.75
IMO, the stock is still worth $25 PPS
They have all the needed funds to move 427 into P2b trials in multiple oncology indication and 225 into P1/P2 trials without any delay. No more need to rely on GVT grants to slowly move the pipeline forward.
IMO, management is signaling that 427 is a significant oncology drug and the program is going to expand big time over next 12/18 months.
Dilution is painful but there is likely a need for speed to accelerate 427 into Phase III. Anticipate that there are other abi combinations brewing and it is important to be in the lead. Getting into Phase III should attract more attention and increase competitive positioning from potential partners.
Plus, as far as the price goes, despite all the talk of a recovery the economy is still shaky and the market may be due for a pullback. That's another reason they may have considered it wise to do the raise now.