RE:RE:RE:RE:RE:RE:RE:RE:ATM used?It is going to be interesting to see the Q3 financials since if they indicate they will be generating enough cash flow to pay the debt as currently scheduled, that would be quite impressive. I suspect that will not be the case but we need to see the financials to ahve a better idea what is the true quarterly cash generative capacity of THTX at this point. Also, they indicated we will know by the end of Spetember this year rather than having to wait until the second week of October - that is a good sign.
Let's presume TH-1902 is a bust. All you have left is Egrifta as Trofarzo will likely continue to lose share to competing drugs. If the good news is that Egrifta sales are much higher than expected and costs are already quite low, then the stock should quickly recover what it has lost in the last six weeks. Beyond that, as the debt is paid down starting next August, the stock should continue to move higher even without TH-1902 success. Pick a number of what you think the Egrifta franchise is worth (hopefully assuming the approval of F8) subtract the debt from that and divide by 24.2 million shares to get where the stock price should be.
I suspect TH-1902 will work but it is impossible to value it well this early in the FDA testing process.
In any event, the stock has quite a bit of upside in it if the Q3 financials show solid cash generative capability and not just a lot of financial engineering.
Trogarzon wrote: The case should be made that the legacy drugs are providing enough cash flow to pay down the dept on schedule. They are not the only comnpany with 85M in sales and 40M net dept. It's manageable and provided the 60M invested in R&D gets a litle bid of credit one day maybe not so far away. When you see stable desease in such pre threated patients whit no alternatives it's not exactly nothing.