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Message: Reading The Tea Leaves

Nextblockbuster,

Prior to Zacks reiterating that statement of financing options, DM himself indicated at the December 2016 annual meeting (see slide 22) that exact same info:

Financial Options presented at Corporate Update (in order of DM’s preference):

Co-development, RVX-208 or follow on compounds: Partnering the future development of apabetalone or follow on compounds with a major pharmaceutical company. Large upfront payment. Future expenses covered by pharma.

Licensing, Regional: Licensing of regional areas or emerging markets, the goal would be to raise substantial upfront revenues. Several negotiations are underway.

Licensing, Indications: By utilizing alternative formulations and delivery mechanisms, apabetalone can be licensed out for various orphan indications such as Facio Scapulo Humeral Dystrophy.

Partnering Arrangements: First right of refusal. An upfront payment for a potential M&A transaction post phase 3 completion.

Private Placements: At-market priced equity financing, four month hold on stock price. Warrants may be included depending on market conditions. Fastest source of cash.

Public Offering Equity: Utilizing an underwriter for a public offering. Potentially an IPO on a major US exchange. Slow and expensive.

Debt Financing: Several firms offer Life Science companies debt facilities while the company awaits clinical trial results. Usually very high interest rates.

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