You are pretty impatient. If Purdue sells $100 million, how much do you think TSPT gets?
Yahoo estimate for 2013 is $27 million coming to TSPT. Use that as a ballpark. Given the royalty rate that would be ESTIMATED SALES of roughly $135 million.
TSPT currently has > $4 per share in cash. Depending on the secondary the cash per share will increase even more, albeit with an increase in share count.
Company is sticking to business plans to develop OCD drug (which may be HUGE) and possibly bring in a late stage product to market.
There are bios with far worse product prospects and little or no cash on hand selling for higher market caps. Settle down and hang on to your shares. Someone will be looking to grab them on the cheap from you tomorrow around the open.
Very well said Kitty. There are 2 things I like about this.
1. There will now be more shares available in the float. When I bought my shares, I had to do it a little bit at a time because the price moved so fast. With more shares outstanding, this makes it easier to buy or sell. It could be that other big investors wanted more shares available for this very reason. If someone wanted to buy 1 million shares of TSPT they couldn't do it before without pushing the stock way up. With this offering, now they can buy.
2. This company now has only 18 employees, $100 million in cash, a drug with a unique indication that serves a huge patient population, and the backing of Purdue, the company who pioneered drug marketing.