RE:Wainwright Report $5 TargetA nice day for sure and validates what a few of us have known for some time now that the company was ridiculously undervalued. The deal today is worth about $40M based on upfront costs and development costs but more importantly it limits the dilution for investors since it would have taken about $40M to finish Ph 2 and 3 and the partner will pony up 50%.
Once Ph 2 is complete then Pulmatrix should have some great options, and with the SP up they might be able to do a capital raise on strong terms to really secure their future. This was a great deal and the only unfortunate thing was it was not done sooner before those awful capital raises last year but I guess no one would dip in until they saw some results.
So much for J&J ... they will start to lose their current revenue stream in 3 to 4 years unless they make a move to buy out Pulmatrix now. A take out would be well received by investors at the right price. $10/sh might be appropriate.
Cheers