What we have here is a company achieving more success than anticipated. The pipeline is chock-a-block with very promising candidates that now need to advance to the next step. The reality is these steps are expensive and, with the stock trading around $18, it's not a bad time to hand the plate around to collect the needed alms. Had this secondary occurred just a few months ago, dilution would have been over 20% instead of the paltry 10% now needed. Accumulate on the dips.
Respectfully, where do you get "the pipeline is chock-a-block with very promising candidates"? Elagolix is in the hands of Abbvie, thank goodness, VMAT2 is stumbling along, GPR119 hasn't been heard of since the partnership agreement with BI in 2010, Indiplon is dead, CRF with Glaxo is dead, Urocortin 2 is dead, and they haven't brought a new compound out of the lab since 2010. The two partnership agreements with Abbott and BI called for a potential of $755 million in milestone payments and from Gorman's mouth on the call, they will not get any milestone payments in 2014. That means that by the end of 2014, they will only have been paid $30 million, which is pitiful. If they had received a reasonable sum of milestones, this dilution would not have been necessary. Management at Neurocrine doesn't give a hoot about investors, they merely want to ensure the corporate teat is well stocked and they can keep sucking. Remember, 21 years in business and not a single commercial product!
PS: Having expressed my antipathy, I still have a stock count in the five figures, because I believe in Elagolix, Abbvie, and Neurocrine's 25% royalty stream when the drug is commercialized.