RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ExcellentPromotion of the stock is the big thing here for a while now. They hired an IR person, they hired a new CEO who worked in the US for a long time. Forget the big pharma background, I am sure that Levesque was connected enough in the US to understand how Thera was seen there and to know what was possible in the next year.
He knows he needs real clinical results to really push the stock price higher, and he knew he would not have them until the end of the year with no certainty that these results will be good. I am sure a lot of private presentations of the company were made to meaningful investors, but in the end, there was no appetite for the stock. The potential on paper is great, but there is still significant risks involved. It is just the reality.
I am a bit tired to see that the board and management of the company are disregarded as fools here by some. A year ago the problem was Tanguay, and now it seems it's Levesque and Dubuc. These guys are not incompetents. We can disagree with their risk management strategy, but now there is certainty for the next two years at least. And again, yes there is dilution, but the company went from aiming at HIV NASH to general NASH, and from two kind of cancers, to five or six, and maybe more. So yes there is huge dilution, but they now go after huge commercial targets.
scarlet1967 wrote: Yes the market didn't react to the news meaningfully in TWO days both you and me have seen how this stock have had delayed reactions to good news besides the deal was made before the announcement as there is no way they could draft this deal in two days the decision was made well before the announcement.
I am sure they are convinced they can't support the valuation but not sure why not trying different strategies when the current strategy is a fail??
They did nothing to promote their progress not even tried??
jfm1330 wrote: Sorry. Thera never achieved clear success. They burned hundreds of millions since 1994, and made only very modest profits in a few quarters. Turn it the way you want, the greatest achievment of the company is to still be alive 26 years after its foundation with only now 90 M shares outstanding. It is still alive because of one scientific success, that ended up in a commercial failure because of an awful formulation of the drug an a patent problem with EMD Serono. TRogarzo was a good deal, but also a commercial failure. So we are where we are, and like it or not, the company is carrying the burden of its history. It is hard to sell hope after 26 years of doing it and coming up short.
Again. I don't like the deal. I thought they would try to capitalize on the good news they just announced before making a move, but maybe it was a "take it now" kind of offer they got. I cannot believe that they made that move without having a clear picture of what was available to them in the US. Calls were made elsewhere before pulling the trigger and there was not a better deal available. Again, I think it comes down to risk management and an understanding that this was the best offer. Remember that there will be no game changing news until some efficacy data in cancer is made public, and that will not happen before late next fall at best, or the beginning of 2022. So the market did not react a lot to their two good news, so for them I think it was clear. There was no way they would go one more year with the cash left with the risks involved. Again, I thought they would wait a little longer, but it seems they were convinced that the market would not react much more than it did.
scarlet1967 wrote: Increased sales when pandemic is at all time high, preparing two protocols for both oncology and NASH phase 3 for a small company like THTX is clear success imo.
The problem is after all that good work instead of going out and spreading the news and making sure the valuation keep rising they panicked and got taken advantage of by crooked small town brokers and got rushed to an awful deal , wrong time wrong place.
Yes there is a chance of market meltdown which some have been mentioning during entire 2020 (guess what it never happened), instead the market and most biotech companies had a bull ran while THTX was near multi year lows. This was the most effective method to halt the little upside run the company had for few past days, demolished the little recent gained credibility they work so hard for thus now they need to show even more progress to regain credibility all that because they didn't have the courage to wait a bit longer, "BECAUSE THE BUBBLE is going to burst SOON."
jfm1330 wrote: Thera 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...