Morningstar $2.10 valuation, page-75

"You say it is quite interesting, to say the least... care to expand?"

I would have thought it was self-evidently interesting:

Nine months ago they said they wouldn't dilute shareholders any further because they had put a "non-dilutive" Kentgrove facility in place.

Then they dilute shareholders.

Most people, I suspect, would find such a sequence of events to be - at the very least - mildly interesting.



"....would you say that a capital raising @ $2 (4.8% discount) is an acceptable means of funding?"

It's more palatable than via an at-the-market equity facility, that's for sure.
Which is the entire point that I - along with others - have been making ever since that Kentgrove announcement was made.


But a "4.8% discount"?
Not sure how you think that is relevant to anything.

Yesterday's closing price was $2.39.
By my calculations, the issue price of $2.00 is at a 16.3% discount to that.

And if you don't think that's the correct way to view the discount, then ask yourself he following:

At what sort of level would the share price have traded today had this morning's announcement have not been made?

And if that was the case, if you were offered shares at $2.00/share, what sort of discount would that constitute?



Obviously a partnership would be exceptional news, but I personally did not expect a partner in the next few weeks for CHF (interim not out), aGVHD/back-pain (MNK exclusivity until Aug/Sep) or RA (12 mth data due next Qtr). Did you?

Well, I always expect a partnership announcement could be made at any time.

Because that's what MSB management have been saying for the 3 years during which I have followed the stock.

Instead, what has happened is that MSB has on four occasions over the past 3 years raised additional equity capital. Seemingly, in order to ensure they are not in a weak partnership negotiating position.

On that note, now that MSB has an extra $40m in the bank, maybe Celgene will finally realise that it has been out-maneuvered and its bluff has been called, and it will have no choice but to sign the partnership agreement over which its executive pens have been hovering so teasingly for the past two years.