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Transition Therapeutics Inc. Message Board

  • chargerfanus2003 chargerfanus2003 Jul 24, 2013 2:06 PM Flag

    How is this deal good for TTHI ?

    seems to me that TTHI (a cash poor company) is on the wrong end of this deal.
    Typically, larger cash rich companies take over development costs and also get to decide the how revenues will be split IF the drug makes it to market.
    This deal seems back asswards as the cash rich company has the power of the decision IF the drug succeeds in trials but TTHI bears the expense of developing the drug ?!?!?!?
    TTHI is NOT financially set up to be running any trials of size.
    I expect a cash raise will be needed (either debt or dilution) so I have sold my position ( a very small one) and will wait for the cash issue to be resolved before deciding whether to reenter.

    This really does look screwy to me. If I am missing something about the deal feel free to say so

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • previous post, "TTHI is NOT financially set up to be running any trials of size.
      I expect a cash raise will be needed (either debt or dilution) so I have sold my position ( a very small one) and will wait for the cash issue to be resolved before deciding whether to reenter"

      and now I will look to reenter under the 4.19 price of the deal.

    • These deals make a lot of sense for the small company, especially for a tiny company like TTHI and a gargantuan market like OA. This can boost the stock price of TTHI far more than it could possibly help LLY. I wouldn't be surprised if we learn later that LLY has taken a stake in terms of options or shares of TTHI.

      • 1 Reply to rickn27
      • "Transition has acquired the rights to develop and potentially commercialize TT-601. Lilly retains an option to reacquire all rights to TT-601 following review of clinical proof-of-concept study results. "

        Usually the big company buys the rights from the small company. This IS backasswards.
        TTHI takes on the expense of developing a drug for pain relief in a subset of patients ?
        Shareholders should be hoping that the development expenses for this drug are very cheap or this will be a major drain on TTHI cash starting very soon and lasting for years.

        This drug has not even started phase 1 trials yet. VERY long way to go before it may reach market, not huge market to reach anyway and the drug rights can be taken back from them for a single digit royalty and 1 time small $ payout ?

        #$%$ ?!?!?

 
TTHI
6.86-0.05(-0.72%)Feb 26 4:00 PMEST

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