The shorts have been looking for an opportunity to cover 4-5M shares.. for years. They got crushed during the pandemic run. This culminated in MSCO running ~ 5.5M shares into the market at $9.75.
So .. these people have been waiting for an opportunity to average down.. or cover since.
But instead of shorting against a flu drug.. they found themselves up against a very sound gout program.. then HCV and HAE as BCRX began to develop their pipeline. Shorting an unapproved flu drug during a flu season run up.. probably a good idea. Shorting a gout drug .. not a good idea.
So.. when the ef de A extended their reach into projecting an outcome of BCRX low dose 5191 trails.. it gave the shorts the PERFECT opening.. at the end of October.. with the market closed for 3 days during Sandy weather in NYC.. the shorts hit it the first 30 seconds the market opened for trading with enough shorts to take out all of the bids.. on a pre-clinical drug delay.
Next we had Peramivir trial suspended. IMO.. the longs did much of this damage by selling in panic ..AFTER.. the shorts fired another couple of missiles into the bid to lead the way. The drug didn't fail anything! of practical value.. according to the IDSA. The trial was indefeasible.. but we dropped another 40-50% on that deal.. all the while the shorts knowing that MFunds and institutions are doing e-o-y balancing and window dressing in their accounts. Search the following string of text in g.o.o.g.. to read what actual doctors said about this!! Thnx map..
"I write on behalf of the Infectious Diseases Society of America (IDSA) to further our ongoing discussion regarding regulatory challenges in the antibacterial and influenza antiviral"
Then the HAE drug is delayed for synthesis of pure drug. . as opposed to compounding. THIS.. looks like a bit of retribution on the part of the Ef d.a for pulling Peramivir out of their trials.. as their $200M investment is gone. They have nothing.. and they need this drug. It's better.. than anything they use now. Just ask the Japanese who tested and approved it in about 24 months.. all while the eF d.a has wasted millions and years f'king around with a trial set-up that was ridiculous due to all of the variables in treating half gone patients.
Now.. the merger is off. Good! We can go about partnering/selling the gout drug.. and building the franchise around HAE.. a $500M/yr.+ program that allows them to manage and sell the drug in house.
They should now just sell/partner the gout drug.. and Peramivir to Shionogi.
Jack, the shorts have been rolling over those 4.5 million shares since then. They are short now in the $1.50 range.
This was a gift to the shorts. Just as the 5 million shares when they were on the SHO list. It's business. The big players in BCRX have done an excellent job of making money on the investment of shareholders. Being an investor, I've held the poison pill as a reminder that Stonehouse et.al know how to play hardball with investors money.
That's it. When, not, if the pps croses the poison pill price, I consider selling. It's called investing, not day trading. I won't get a better retun over 5 years on anything except land with oil under it.
I hope you understand shorting a stock as a busines better than what you imply that the short has been static since 1209. They have been doing it 100K at a time in a stress free world.