Semi,
I hate seeing a secondary offering for stocks I hold, however, for the DSCO deal I think there is some merit to their timing. The key for their long-term success is expanding the market with their Aerosurf product. Therefore, it's key that they move forward with this program ASAP. DSCO has the draw down loan situation that would have given them limited funding, but there is a great downside to these 'loan' deals, whereas, the secondary is a straight forward deal.
My thinking is this and the underwriters probably put some pressure on them to get the deal done now--and the number and actual underwriters is a good sign that the market would take the stock. Basically, the floor for the stock is the $2.00 deal, and with any good launch news in the next few weeks, should give us a nice bounce. Some might say that doing the deal before the actual launch is a bad sign..........but I think differently. Within the next few weeks--actual launch of Surfaxin, and I think some news on Afectair sales. IMO, DSCO has been marketing Afectair for nearly a year with actual deals tied to Surfaxin. "IF" and big if-- a big deal could be announced as for a major neonatal hospital having adopted the combined product that would be a nice catalyst. Also, there is the chance that we could hear something from the European market in the short term.
For what its worth---I actually bought more shares this morning at net total of $2.02. Was nice to see that the stock close with a nice bounce from the $2.00 secondary. My entry price for the stock is well below $2.00--so IMO now would be a good time to take a position---with fingers crossed that the launch goes well. They sure have had the time to pre-market the product.
Good luck! |
