Alfred, have a look at the Prothena
financial report for the period ending Dec 31/20. The company had $298 million in cash on Dec 31/20. Their expenses were almost $114 million last year with revenue of less than a million. Their burn rate is almost $10 million per month. They’re likely down to $240 million in the bank now.
They need money. It’s not only a necessity but with not even 40 million shares outstanding and a share price of $25.00, it’s a no-brainer for Prothena to raise money via an equity offering.
As of Dec 31/20, as reported by XOMO, Prothena had reached no developmental milestones in its activities under the Bioasis agreement. Prothena can’t even make a decision about exercising its target options with Bioasis, let alone doing anything bigger.
There are lots of big things to think about Bioasis, but for me, Prothena does not figure into any of them. Good data from them on their first Bioasis target would be swell. And we may get news of a target option, or both options, being picked up, but that’s it. Picking up the options would likely have more value to Bioasis as news than as revenue.
Prothena can’t afford to buy Bioasis. They are raising 6 or 7 months of operating capital. Always good when public companies can continue to operate, as Bioasis is certainly able to do.
Good for Prothena.
Long live Bioasis, and all who sail upon her.
jd