"It would be even nicer if the management started buying the stock on the open market with their own money. That would be a nice vote of confidence."
Unfortunately, share buyback (and takeover) are very often flight of fantasy for us suffering shareholders. This is even more improbable with biotechs/startups since their burn rate is extremely high.
Don't get me wrong, being someone holding IMUL (from a much higher cost basis,) I don't mind at all if the share price go up. Realistically though, since IMUL has lost HMD as an corporate sponsor, it has to dip into its own ~$60M. At least this will help to maintain its operations for maybe the next 2 - 3 years. Unless there is a miracle, Ragweed Allervax has in effect lost a year of opportunity. And since allergy research is not considered as the fast track by FDA (just a guess,) we are talking about 30 months (12 + 18) here. It is highly doubtful that it can ask for a bank loan.
Unless there is a breakthru with the FDA bureaucrats, or more $ for its Cocaine research, the best bet for us shareholders is to see IMUL hitches up with a corporate sponsor (with an extremely DEEP POCKET.)
regards, Bosco (who is contemplating of selling his shares of IMUL everyday!) |
