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Biotech / Medical : Regado Biosciences (RGDO): Investing When the Blood Flows an -- Ignore unavailable to you. Want to Upgrade?

To: DewDiligence_on_SI who wrote (2)	4/4/2014 10:14:24 PM
From: Arthur Radley	Read Replies (1) \| Respond to of 7

Dew, I thought I had responded to your post earlier, however, it appears I failed to send the response after reviewing the message. So first let me thank you for expressing the con side of this stock—always good hearing conflicting sides of a biotech as one looking through my brand of rose colored glasses could have potential problems. At first, I also had reservations on such a small biotech having the capability of running such a massive Phase III trial. However, after digging a little deeper I came to the conclusion that with the research and nucleus of the drug platform coming out of Duke and the cadre of doctors that RGDO has on board—they have the savvy. Now with the just announced secondary, this should remove the funding issue. IMO the merits of the stock outweigh the reservations one might have. When you consider that with the Phase II trial having more than 600 patients and now the current 1,000 that have been enrolled where the head of the DSMB committee has given the go ahead for expanding the patients eligibility to ‘all comers’—this should indicate that the AE issue hasn’t surfaced based on the near 2,000 patients that have used the REG-1 drug. This doesn’t guarantee that AEs will not occur, but it sure gives a good indication, IMO. I do have one question and that deals with the fact that for the Phase II trial they used heparin as the comparator drug. Now in the Phase III trial the comparator being used is AngioMax(Bivalirudin) marketed by The Medicine Company. It appears that AngioMax will be the major competitor for REG-1. Also, a Google search for—Discovery and Development of Direct Thrombin Inhibitors –gives great information about these type drugs AND the issues that have developed in efforts to get one approved. Finally—the swoon in the stock price today! On the surface it looks bad, other than the current gale force winds that the biotech are facing. It appears that the price decline was the underwriters taking advantage of a ‘sweet’ deal for underwriting the $69 million secondary offering. From the SEC filing this afternoon, it clears up the mystery for the original PR that the deal would involve the gross proceeds of $60 million or a total of $69 million based on the overallotment allowance. It seems that RGDO agreed on the dollar amount based on the hypothetical price of the stock being at the April 2, close of $11.44. If the price came out at $11.44 for the secondary the proceeds would have involved—5,244,755 shares to get the first $60 million, and the additional amount of 786,713 to get the gross up to $69 million. With the stock dropping today on about 200,000 shares being traded, the underwriters will not get 7, 225,130 shares in order for RGDO getting the full $69 million—basically, IMO, the underwriters are getting 20% more share at discounted prices. Shares that they can now sell for their good customers—making what I think is a SWEET deal for new investors! Would appreciate your take on my take!