It is puzzled me why the company makes the public offer now.
Do they urgently need money for survival right now. No, their cash position was at $200M as of 3/31/13.
Seemingly, November is a much better timing. Why now? One issue is their previous $100M loan was collateralized by Vascepa's intellectual properties. If the company intend to take a buyout offer or a significant partnership, the suitor(s) should make sure the intellectual properties are totally owned by the company.
Don't waste your time to argue with bashers about fish oil ..... If they don't do it, they are not bashers.
Seems like protecting the IP of the drug is a smart move. It lifts a "overhang" like the company had relayed may have been in their way from moving ahead (with BP).. Seems like anyone one who saw that as well is looking in the right direction..
Just my opinion there...
I hate to point to the obvious but, given that there's no pressing need for more cash right now, the only good reason to do a secondary would be if you believed the pps was going lower. A pity they did not hols the same belief at $12.50!
The answer is simple: to make the most money for themselves and their cronies. The very same reason Amarin executives awarded themselves thousands of free shares today. Wake up!
I think it's the cash burn rate ...something like $62 m to launch the drug so far and expected debt pyts going forward on the loan you mentioned etc thru 2015 .
Amarin is finding it's expensive for a small biotech to launch a new drug.
My view is that they have modeled out a worst case scenario of cash flo .... to ensure survival until the Reduce it trial ends ...at which time we will either have expensive fish oil OR a blockbuster drug
it is too important to figure out the dynamics behind the offering. JZ said that, before the offering, the cash position is enough to go thro 2Q14 (now said that, with the offering, it is enough to go thro entire 2014). Such that, debt is not enough to address the timing, because November is obviously a much better time (in consideration of money alone) than September, for the offering. The company does the offering at the low price and 4 months before the obviously better timing, the dynamics behind the offering should be stronger than that $120M alone!
Its probably just for negotiation purposes on ANCHOR partnership or BuyOut. If they didn't have the cash, BP can say u have no money so u need us....we will pay u $X amount and take it or leave it or go it alone by yourself
frank and sadie....He's my POSSIBLE thought! They may be trying to force the hands of BP. With only 19-20 million shares trading the last 2 days.....that would be normal considering a secondary, however, I think that they may not have sold any of the 21.7M shares as of yet. BP may...yes may come in soon and have asked them not to sell the shares...just yet! The selloff yesterday and today would be normal volume when announcing a secondary and the cancer concern today!
Sentiment: Strong Buy