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Trius Therapeutics, AŞ Message Board

  • biotex2000 biotex2000 Sep 1, 2011 4:50 PM Flag

    Crappy SEC filing!

    Good God! A $100,000,000 shelf offering?! Why the hell do they need to dilute us SOOO much?! They planning on buying out Amgen or something? What a bunch of crap!

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    • Yeh, but if you double the marketcap of the company by quadrupling the shares outstanding...where does that leave shareholders? Also, it greatly suppresses the extent of upward share price movement on breaking news.

    • The more cash you raise the more you are worth these days

      Bottom line

    • does anyone else think this is not THE TIME to git into this beast!?

    • Thanks Rahsoman100 for your very insightful feedback. I agree the next two catalysts for the company are top line data from the first phase-3 trial and EU deal. Do you think they will also start the lung phase-3 trial before the end of the year? Are you researching any other companies?

    • I don't see TSRX or any other biotech doing a big raise in the absence of a major positive catalyst in the current environment. PMs are not making investment decisions based on fundamental value when the volatility indices are spiking. I assume that the second ABSSSI trial will cost more than the first study and would take longer to enroll especially given that it needs to be coordinated with Bayer. I have not seen a big pharma that enables a biotech partner to move faster. I would also hope that an EU deal would enable TSRX to put off financing until NDA approval but these companies are always going to be opportunistic if a financing window opens. You have to keep in mind that, while the execs and board are subject to significant dilution with every financing, they will balance that against the capital needed to fulfill their partnership obligations which will take them to the next value inflection point. Hence the recent shelf filing that provides the company with the ability to be opportunistic when the conditions are right. I highly doubt that can happen before top line data are reported for the first trial.

    • Upon further review...I can think of one very good reason for such a large offering. The phase III results are in; they look stellar, and the company is preparing to scale up for commercialization...and are going to go it alone rather than partner. If that is the case, then I'm okay with it..but think they should make part of the offering (almost always at a discount to the market price) available to current shareholders.