She said it was in the 10Q filed 11/12, but since the IPO I was uncertain if anything changed with respect to dilution or what have you.
"Arena has an equity investment of approximately 4% of TaiGen's outstanding common stock, as reported in our 10Q filed on Nov 12."
That would be about 27.8 million shares. Closing price is a little over 2 bucks. That would be a little more than 55.6 million in that position, ASSUMING I am looking at the right TaiGen Biopharmaceutical ticker (4157:Taiwan)
There another two quarters of cash if need be.
Another hidden gem!
ASTELLAS $7 Billion+ Comapany
Astellas Pharma Inc a Japanese pharmaceutical company, formed on 1 April 2005 from the merger of
Yamanouchi Pharmaceutical Co., Ltd. and Fujisawa Pharmaceutical Co., Ltd.
PRNewswire/ -- Arena Pharmaceuticals, Inc. ("Arena"), a privately held biopharmaceutical company, today announced that Arena and Fujisawa Pharmaceutical ("Fujisawa" NOW ASTELLAS) have entered into a collaboration involving Arena's proprietary CART(TM) Technology. Under the terms of the agreement, Arena and Fujisawa (NOW ASTELLAS) will jointly validate selected orphan G protein-coupled receptors (GPCRs) as drug screening targets. Arena will be responsible for receptor identification, localization and regulation, application of its CART Technology to Fujisawa (NOW ASTELLAS)-selected receptors, and validation of screening assays based upon such selected receptors. Fujisawa (NOW ASTELLAS) will be responsible for screening of its chemical compound library using selected CART receptor assays, identification of chemical leads, and pre-clinical and clinical development of such leads. The collaboration also includes the opportunity for screening of the selected receptors by Arena using Arena's in-house chemical library. Though details regarding financial terms are not disclosed, the agreement provides for Arena to receive assay license, milestone and royalty payments on sales of drug products discovered under the collaboration.
Very nice find. I am particularly interested in their timeline to approval for their pipeline, and the fact that they are currently valued at about $1.1B USD. They also appear to have preferred dividend paying shares for major holders if you review their financials. This makes me wonder if ARNA has a passive stake like this in other micro-cap Biotechs. Someone mentioned a relationship with MSTX earlier, where I think Jack sits on their board.
Sentiment: Strong Buy
This is a game changer. If Taigen has a couple of drugs with technology supplied from Arena coming up for approval, and do indeed get approved, Arena will be laughing all the way to the bank! Not only do they own 4% of the common, Arena may also receive royalty payments based on TaiGen’s licensing revenues and sales for products, if any, they develop using the receptors Arena provides them. If TaiGen or its licensees are not successful in developing products at a particular licensed GPCR, then Arena will have the right to such receptor and any compounds identified using the Company’s assays. This is a WIN, WIN for Arena!
This company has huge potential, just as ARNA does. ARNA's portion will not be valued at 55.6 million for long. Their first drug should be approved in Taiwan and China this year and there is a huge need for it. They are in the process of outlicensing it to other countries. They will receive upfront payments, regulatory and additional milestone payments as well as royalty payments on sales in the future. Sound familiar?
I dont know where people are getting there numbers, maybe im looking at the wrong company but it looks like they have 22m shares. how can 4 % be 27.8 what am i missing?
TAIPEI, Taiwan, Jan 17, 2014. TaiGen Biotechnology Company, Limited ("TaiGen") announced that its parent company, TaiGen Biopharmaceuticals Holdings Ltd., began trading today in the Taiwan GreTai Securities Market under the ticker 4157.TWO. The offering price is NT$ 50 and the company raised NT$ 1.1 billion through the sale of 22 million shares with its initial public offering. The proceeds will be used in advancing TaiGen’s discovery and development pipeline. KGI Securities and SinoPac Securities acts as book-running managers for the offering. TaiGen is valued at NT$ 36.9 billion based on its closing price of NT$53 on January 17th with 696 million shares outstanding.
Look closely at the last part of the press release...
'TaiGen is valued at NT$ 36.9 billion based on its closing price of NT$53 on January 17th with 696 million shares outstanding.'
Arena owned 4% of TaiGen years before the IPO. That would have been 4% of 674 million shares.
my understanding was that the only released a limited number of shares with the company and early investors keeping/being granted shares without having to purchase them through the IPO