Today's news is very encouraging I think will be viewed in the scientific community as quite impressive ("similar to PD-1) (but a new site) opening the door for more likely partnering. While I love this company and its leadership and scientific team, I am thinking that it might be even more scientifically productive if part of a larger pharma with more resources. What CGEN has accomplished with its small but brilliant team is pretty amazing but I wonder if this Company's intellectual property (scientific value) would be even more valuable from a product development standpoint if owned by a larger company with fewer budgetary and resource constraints.
I'm actually long but raising a legitimate concern regarding the timing given the large amount of cash on hand. If the stock moves to 35 then they would only be issuing a million shares instead of almost twice that amount but my issue is really about timing. They cant run through $135 million in the time it will take before a decision.
The timing is strange given the company had 135 Million cash at the end of last quarter. Why another $35 million and now? Weird in that they have plenty of cash for short term and if the FDA approves the stock will be much higher and the cash raise would be less dilutive. Maybe they expect bad news and are concerned about raising money after an unfavorable FDA announcement. I am more concerned than I was yesterday.