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Santarus, AŞ Message Board

  • jwsherry02360 jwsherry02360 Nov 20, 2010 12:01 PM Flag

    It appears they have ample cash so it


    seems odd that they would opt for dilution in this case but on the other hand shows some confidence by Cosmo that shares will be worth more than cash in hand today.


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    • The way I read this is that it was Cosmo's option to take the payment in shares, which seems like they are showing a lot of confidence in the company and the share price improving.

      • 1 Reply to donfromslc
      • They way it reads it is Cosmo's option to decide. So, #1 the company received the milestone payment for as a result of the "positive" results of the clinical trials. In case you weren't sure if the SNTS press release was just lip service or not, they paid the $3M milestone, so I assume when you pay out that money, it's because they met or surpassed those expectations. #2, Cosmo, the company that is intimately involved in the clinical trials for the drug, said give me the stock instead of the cash. So, that's a pretty good endorsement that the future of this drug is a very good one.

        The future stock price of SNTS has a very good chance of increasing dramatically. I still also think that it may not do much until we get more of the news scheduled to be released early next year. So, just hang in there and enjoy the turkey on Thursday!

    • 1calgal Nov 21, 2010 2:16 AM Flag

      Maybe the added cash is needed to successful launch in diabetes II drug. No only do they have to manufacture the drug, but it has to be promoted with a successful marketing and advertising campaign.