I highly respect this SA author....this is from his blog released on 5/27.
Equity Offerings Can Be Good for Existing Shareholders
This is clearly illustrated by a recent financing of Trius (TSRX). The Company announced an equity deal on January 18 2013. The closing price on the day of the offering was $4.90. As investors realized that this deal meant that the company was now well funded to take its lead product tedizolid through product approval in mid-2014 and was in a strong position to bargain with partners, the stock has performed very well. At the latest closing price of $7.95, the stock is up 62% since the offering. See my report on the financing.
I think that it is in the interest of shareholders that a company incorporates all of these financing options in its strategy. The goal is to always keep the company in a position of financial strength. It is an unavoidable fact of life that biotechnology companies will have to raise a great deal of money and issue shares or partner to do this. The goal is to issue the fewest number of shares possible and to give up minimal product rights to a partner.