When Whitten came out with the following during the 2012 Q2 earnings conference call we all feared the worst -
"... we now expect that we will end the fiscal 2012 year with a cash position of $60 million to $64 million. This forecasted cash position will take us comfortably through a number of key value inflection points, including the availability of top-line data for CLEAR-108 and top-line data for the randomized portion of TARGET-NTM. And as I said earlier, we are projecting our cash runway will extend well into 2014."
Thankfully Don took prompt action in removing Whitten and the others who would have stood up to us.
Your immediate dilution of your shareholders - just a couple of months after Whitten told everybody the Hercules financing meant you wouldn't have to issue more shares before the NTM results - was much appreciated. We made millions from the 6.3 million shares you priced at $4.07, diluting your shareholders by 20% in exchange for $26 million you didn't need.
Your second 20% dilution just nine months later, when you still had not only that $26 million but more than a full year's operating expenses in hand, was a stroke of genius. There was a very real danger of substantial share price momentum after you released Phase III CF data which made it inevitable that Arikace will displace Tobi. Without the guarantee of that sub-$10 offering we could never have risked shorting the price down to 50% of the average analyst valuation.
We'll do our bit in keeping the share price under control until you sell us another 7.8 million shares in Q1.
I'm sure we can count on you to continue to hide the true value of a drug we expect the WHO will recommend physicians use for all pulmonary conditions currently treated with amikacin injection.
You'll still have at least a year and a half's operating expenses in hand - but you can say you need the cash for the commercialisation roll-out, and decided once again to negotiate an offering from a position of strength :-)