GREY:IPHAF - Post by User
Post by
winafewon Nov 18, 2010 12:17am
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Post# 17722447
Like Deal
Like DealI'd say the deal looks pretty good. I've been long ISA and lost more money than I care to admit, but ISA has been a great case study on how tough it is to get a drug to market.
Things I like about the deal
1. Gives the company a sense of stability. Deal should provide enough operating cash for 3 to 4 years at least. The sword of bankruptcy is removed from the picture.
2. Funds the phase 3 for transplant (where all the money is) although based on past experience it seems that approval for the drug in transplant might still take 5 years or longer.
3. Don't know alot about ILJAN but it can't hurt to have partners with deep pockets.
4. Yeah, dilution is bad, but a smaller piece of a big pie is still preferable to a big piece of a bankrupt pie.
I'm still positive on ISA, the drug seems to work and if we can ever get it to market, a 200 million share float will be a non issue. The lack of trading volume is a bit mystifying, this is a huge company tranforming deal, but the market basically ignores it? Maybe investors are tired of this story already.
All IMHO. Good luck to all.