CRIS is paying 11 or 12% for a loan backed by product revenues. If IMGN could arrange a loan at 3% or 4%, then it might be a reasonable idea, but not at 10%+. If they wait until Kadcyla's upside becomes more clear, the stock price will rise and they can issue 5MM shares at a higher price. We don't want, or need is a large, low-priced secondary issuance, or a high interest loan; that just dilutes shareholder value and reduced upside potential. It also allows management to overspend now, like the US Govt does. If they can't get to an inflection point within the next 6-9 months, they should just look for a buyer now. If they can, they should do nothing and make it clear that they will not do a secondary, but DJ has no credibility on this topic. If, either Kadcyla upside becomes more clear, or 289, or 853 advance in the next 6-9 months, the stock price will go up. IMO and sound advice.
Monetizing COULD be a bad idea, but it could also be a good idea. We know they will last through 2015 without a capital raise, and at the end of 2015 (which ends in july 2015) they will have 60 million.
Let's say they wait to hear from Marianne, then they monetize in feb of next year with one more indication. They monetize have the revenue in return for several hundred million up front. 300 million? Now they don't have to do a capital raise for a while, the stock trends upward, hits 16-18 and they can do a capital raise then at a price that is more advantageous than this crummy 11 dollars per share.