Just to put the Daiichi position in perspective, the 2.9 million shares they own is nearly equal (about 5% lower) than the Lilly position.
You amuse me. You are the first person to use the phrase "publication in major journals" in an Axovant post! I was guessing that their publication plan for any studies that they run calls for publication in the BMJ - The BERMUDA Medical Journal!!! Seriously though, my point about clinicaltrials submission was that they can conduct the study without submitting to clinicaltrials. I doubt that they are even concerned with the longer term implications of not complying with the requirement to submit the study.
Duke - Is the statement below what you are referring to? It lists the special dividend in terms of british pounds. If so, I have two comments:
- One ADR share (traded on the NYSE) is roughly equivalent to 2 LSE shares. So, a dividend of 0.20 pound sterling per LSE share would equate to roughly 0.40 pound sterling (or roughly 60 cents) per ADR share. (A simpler way to consider it is just to compare the special dividend to the yearly dividend, in the statement below. It is, in fact, one-quarter of the yearly dividend, and the ADRs have been paying roughly 60 cents per quarter lately).
- While they refer to it as the 4Q2015 dividend, this dividend will actually be paid in April, 2016, with an x-div date in Feb, 2016.
GlaxoSmithKline expects to pay an annual ordinary dividend of 0.8 British pounds per share each year until 2017. The company also plans a special dividend of 0.20 British pounds per share in 4Q15.
Based on what they had said previously, the dividend should be roughly twice that. Why do you believe the dividend will be 31c?
Your question is in reference to the special dividend, but it applies to dividends in general, also. Why do people seek out stocks that pay, say, a 3% dividend instead of a 1% dividend?
I think the answer is that there are investors for whom dividends matter. They want the income stream without selling shares (it may only be a minority of investors, but think of retirees who use the dividends as their retirement income). Others may use the income stream to diversify their holdings, by investing the dividends in other companies.
I will modify my last comment to: The real question is whether they will comply with the requirement of posting, or not. We will see.
I don't know that I can give an "absolute answer". I think it depends on how and where you hold your shares. Some brokerages may have their own rules. I don't see any reason why this would be treated any differently than an ordinary dividend, though.
To be accurate, they don't "have" a few weeks to post. Posting to clinicaltrials is voluntary. The real question is if they will post the study or not.
Just another point regarding the legitimacy of this company. They announced last week that they had started screening patients for the "Phase 3 study", but there is still no listing on clinicaltrials.gov. It would be nice to see the specifics of their proposed primary variables/analyses, as well as I/E criteria. The I/E criteria would shed light both on any specific safety concerns that they may have and also on how wide a label they may expect, if they manage to bring RVT-101 to market.
When is a rose not a rose???
GSK's 2015 4th quarter dividend is the dividend that they will pay in April, 2016. x-div date should be about mid-February.
The discussion at the end of the article was especially insightful. Even if AXON can get the drug approved, the challenges of getting payers to pay for the drug will be nearly insurmountable, given that approval would be based on small symptomatic improvements and the availability of Aricept generics.