RE:RE:One more thing ......"A lot of ifs and known unknowns around this deal as is said. There also seems to be fingers in this pie which have an orchestrated advantage over both of the main parties involved. Havent we all noticed!"
Cash is King currently. We've been in the worst biotech market in history, literally. 25% of US biotech was trading below the value of the cash on the balance sheet in recent months. It had negative value.
When inflation is 0%, $1 in five years is $1. We have been experiencing multi-decade high inflation that had reached over 9%. That can change the value of investments 5 years out radically. Add the risk of pre-clinical biotech to the inflation rate and what's $1 worth five years out; especially when more cash will be needed to keep supporting the burn rate.
A once-in-a-Century pandemic and a once-in-70 years war given Putin's attack on Ukraine led to multi-decade high inflation and Central banks panicing to put on the brakes. Early stage biotech has been one of the major casualties given the amount of cash they burn, the risk, and the time to payout.
The new company needs enough cash to hard data and a compelling timeline to cashflow to support the ongoing cash burnrate.