This is no big deal companies especially in biopharma always file shelfs. It is considered general housekeeping to put these things in place and have it available for the next 3 yrs. when conditions are righ he can access it. As others have mentioned, he may never draw on it but has it available as a tool when and if he chooses to. Also, we had $49MM available from the previous shelf - he is just re-upping it to $100MM as I am sure he is anticipating positive results and wants this flexibility to draw upon it. He is filing now to get it out of the way since the next few months they will be busy with analyzing the data and preparing for commercial launch. As I said before with the kind of positive data I am expecting from the CF trials institutional investors will be lined up around the block to put money with a potential $1B plus platform, especially when we are trading closer to $25. Also the universal shelf does not preclude him from selling stock but could be debt or hybrid like convertibles. Lewis is a savy ex healthcare investment banker who has thought this through and understands the proper tool to put us in strong capital position when the appropriate time comes. My feeling is that will draw on this shelf after the CF trial when stock takes off and investors want in. This will be important also as there will be discussions with other companies for partnership or even takeout - we want to be in a position of strength with the drug/science and capital position to even do it alone and have higher upside going forward...
Anyone who buys or sells a stock especially in biotech based on company filing a shelf does not deserve to make money in the stock market. Let us at least pretend to be and educated seasoned investor on this board...=) Lets discuss topics concerning the likelihood of success/failures of upcoming trials based on our knowledge of science, drugs, past programs in the space or discussions with industry leaders.
Just thinking about this and realized if I were Lewis when would I access the capital markets. Probably after phase 3 cf trials esp if all the large dedicated long term funds want in and we are trading closer to $25...also thinking that all bio pharma even profitable ones access the capital markets, retail usually are the ones to first complain whenever companies sell equity...it really comes down to the terms of the deal (any discount, amt of raise, any warrants, etc...) if Lewis announced a $40 mm raise @ $20 on tuesday no one would be crying on this board....funny he just files a refill of an already existing shelf and people are already in a panic....look at the previous company he founded AEGR - and how many new shelfs they have filed, even equity raises at lower prices and look how great the stock has performed...:) enjoy the long weekend with friends and family and try and forget about INSM for a couple of days....
"... if Lewis announced a $40 mm raise @ $20 on tuesday no one would be crying on this board ..."
Can't speak for others Beach, but I'd be positively livid if that happened.
It seems we have completely different ideas of where the share price is likely to be with strong Phase III results. If you have good reason to believe it will be anywhere near as low as $25 I'd be interested to see your valuation calculation.
I've been trying to add some numbers by way of colour - but keep falling foul of the filter.
You don't suppose the fact that the Shelf was filed on the Friday after the AGM might be seen as supporting your "housekeeping" theory?
On that note - did anybody here attend the AGM? If so - anything worth sharing?