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Biotech / Medical : ARIAD Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Jongmans who wrote (367)	11/13/1998 2:53:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 4474

What would the price of ARIAD's shares be now without this financing announcement? I would assume higher, given that they (presumably) don't need the money immediately. A lot of investors will reflexively sell when they see a financing like this. It's hard to disentangle the effects of these financings from the sort of companies that do them. A big chunk of the companies that do these have no alternative, and not surprisingly this doesn't usually bode well, irrespective of any malign effects the financing itself might have. Note that these financings _can_ work out fine if the company does well and their stock price appreciates. It just doesn't usually seem to work out that way. GZTC is an example of a "reputable" biotech with this sort of financing in place. Stock did terribly after the financing (maybe for reasons unrelated to the financing), but has recovered recently. MABXA recently announced they were redeeming their floorless, and the stock recovered dramatically. Peter