I do think that like any deal the first offer was very low. Just like pawn stars, shot a low offer and work up from there. The first offer was most likely in the $7/$8 range and was tossed so quick that both sides were upset and no counter offer was made. Next I think they started looking for partnerships, however they wanted to much money or rights. Remember the we want the 80/90% that can be covered by 15-18 people and the mile wide and an inch deep can be handled by the partner? What? Who the #$%$ is doing that anymore? Most pharma companies are getting rid of the mile wide one inch deep personnel and just going for the 90%. So that is a dead point. Now we might have some movement on the partnership or potential buyout but it is moving slowly and the BIG 4 know that they might have to launch this themselves. Big deal, they have secondary support and help that will make this a success but will take longer. Now the buyout price has gone up if they are successful, so everyday that passes the cost of the company goes up. Once sales hit and they are anything above projected then the action we watched on Friday will be nothing compared to positive sales and positive scrips numbers.
drjwater. I wish you knew what you were talking about but I am afraid you are clueless. Every day that passes the cost to buy PATH goes down because with each passing day PATH is more desperate. With every day that passes we are one day closer to having to go it alone, which will be an utter disaster. Wall Street realizes this..have you checked our stock price lately? With every day that passes we are oen day closer to a large dilutiive stock offering, probably somewhere around $2.25 as the company will have to raise money to go it alone. You don't think potential buyers recognize PATH's increasingly desperate situation? Multiples on buyouts only go so high. Take a look at the history of buyouts over the last decade. At the current price, our highest offer would be around $5. Management probably could have got $7 a while bak but they F'd up and now they are deep in a hole.
again, i will be surprised if there is an offering. presently, path is at position of strength with approval of zecuity & it will be odd to raise money at the historic lows of stock price (to cause the maximum dilution).. finally, even though long term with going alone is much better than partnership or buyout, with dilution it has to make sense.. example over the time of getting successful if path dilutes by 2x, then finally after 1-2 years buyout price needs to be at least 2x to get into same situation & 2x+ to have profits over these 2 years.. there is always risk involved of how successful path gets during this time as well..
other option of going with a loan (*if they can get one*), with lesser dilution might make more sense..