RE:RE:RE:RE:RE:RE:ExcellentThera ended up with this deal for two reasons. First, a track record of relative failures or call them underachievments. Second, given the first reason, they decided to make this deal thinking about risk management. Now they can survive a general market crash and they can survive bad results in oncology, which results will come before NASH results.
On the other hand, management and board are probably thinking that they got the company their two clinical programs for an extremly affordable overall price. Almost nothing in fact, especially NASH. So now is kind of the other side of the coin. I think that their line of thinking is that overall, given the price paid for Trogarzo, oncology and phase III in NASH, with potentially 70 M$US to work with from now on, ending up with 120 M shares outstanding in three years is not that bad.
I don't say I fully agree with that point of view, but I think it's the way they see the overall situation, all that taking into account that they were not able to find a better deal, and I am sure they tried. I am also sure that if Thera would be a company with a short history. That after an IPO that company would have been able to buy Egrifta, Trogarzo, phase III program in NASH and the oncology platform, while still having 27 M$US to work with, the market cap of this relatively new company would have been much higher, and a financing deal much more favorable. But it is not a relatively new company, it is Thera with its 25 years of history without a clear success. It is what it is I guess...