Aug. 21 at 11:35 PM
$OSTX I think management wants the ability to capitalize on a major September rerating.
OSTX has:
* interim 3-year OS data expected in early September
* FDA Type C Statistical Methods Meeting in mid-September
* FDA discussions concerning the statistical approach/BLA
* potential RMAT decision
* discussions around comparator methodology
* MHRA statistical-methods discussions
* eventual BLA/Accelerated Approval pathway
So imagine OSTX goes from
$1.50-
$2 before any news is released, to
$3,
$4,
$5+ following strong 3-year OS and favorable FDA feedback.
An ATM becomes far more attractive at
$5 than at
$1.50.
That’s why establishing the facility before the potential catalyst makes sense.
They’ve effectively created an option:
If the stock rerates substantially, OSTX can raise equity at much higher prices.
And if the stock doesn’t rerate?
They don’t have to use the ATM. They can also cancel it at anytime if they strike a partnership deal.
