$12 actually made perfect sense for the secondary. the average selling price over the last 30 days prior to the announcement was $13.97. The number of additional shares including the over-allotment was 11.4%. So future earnings will be diluted an additional 11.4%, and the PPS then would be, all other things being equal, 13.97 X .886 = $12.38. Add a small discount to that and you get your $12 a share. In any case, the market liked the $12 floor and the vote of confidence by institutional investors in buying into the story at $12, so shares are being bid up from there. I wonder how many institutional investors added to their positions.
I have a big position in KERX and had it before Baupost came along, so I love Baupost!
come on Arnold, magnum deserves a heap of praise to be sure but did you have to throw in the "small" in front of "thanks" for binary? Isn't there enough love to go around? ;-)
you're right sidelurker! I tell ya I'm right behind you. Let's fry this hunk of salt pork! Drop the toaster into the bathtub and let's short this puppy out before it hits $50!!
absolutely sidelurker, this bloated full of baloney HepC infested pig is going to $50 I mean $5!!! If I were you I'd go ahead and short 10,000 shares ASAP and then let me know how that goes and then I'll short some!
by the way gokart, I completely disagree with you. Any company in RNA science knows that ALNY and ISIS are the two leaders in the industry. If anyone is in a position to evaluate potential winners in this space, it's Alnylam scientists. And Alnylam is aggressively working on their drug portfolio to become3 a full-fledged big pharma company, as is ISIS I believe. (I own both). the number of approved drugs has nothing to do with an acquisition. But I think if they were to make one, it would be geared toward a niche technology that they want to acquire, or possibly a phase 2 drug that they think would complement their own.
Alethia seems to get into the details about the drugs more so than other analysts.
They can acquire a much smaller company for its technology, similar to what Bluebird did with Precision Genome Engineering. Or, as gswk says, it's just a smart thing to do to finance their P2 and P3 trials, notwithstanding that the announced price is now $7 higher than the price is now. Sets up for a short sale of the secondary or a re-pricing, unless the shares are already sold.
Igonber, I'll check out PSDV, thanks - I think I used to follow it. What's its greatest potential (drug, device, etc) in the next 12 months?
BTW, sorry about then confusion over "backer b - It didn't register but I think you meant Baker Brothers. the phase 1 data on ISONEP was outstanding. I think there's promise here regardless of what Pfizer is doing, unless of course there's something in the data they didn't like.
I was about to reply to your comments, Ignober, but it looks like John pretty much covered it. I don't think (but I'm going to find out more) that Pfizer is interested in buying LPath since they divested of assets that included LPath - this area is a stated non priority for Pfizer. I think they may be holding for ISONEP results, which, if good, will fetch them a far greater price for their WW license.