GREY:IPHAF - Post by User
Comment by
WASKERWISKon Feb 11, 2011 11:37am
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Post# 18116657
RE: Please explain....
RE: Please explain....its not rocket science TeeVee. Paladin is a pharmaceutical company not a mutual fund.
They did this deal for the tax loss and the licensing rights in certain geographic areas. Paladin's risk is in the costs of getting approval and bringing the indication to market in those areas
The shares were gravy. An opporutnity arose to unload the shares in bulk so they took it and put themselves in a position where between the tax loss and the share sale, even after development costs, they are still ahead even if drug approval is never obtained.
The fact that they are spending any money at all on product approval tells you that they obviously think the product has real commercial potential. The fact that they are selling the shares tells you Paladin is a prudently run business; that they realize that drug approval is never a slam dunk and that they never put all their eggs in one basket.
Very well run company Paladin; wish I had bought in back when they first did this deal.