Aug. 7 at 1:56 AM
$TGTX EU buyback - why it likely didn't happen?
-TG rec'd
$152.5M in upfront and milestone payments.
-TG, according to MW, would have to pay some an agreed amount which was alluded to as a "multiple" of what were likely the upfronts.
-Even as a straight up repayment of cash rec'd, it would have used up >50% of the COH at end of June. Need operational cash through a deal review and closing.
-Note that TG drew down
$250M of a credit facility implemented in Q2 2024.
-Credit facility very likely has covenants requiring maintenence of certain amount of COH.
-If TG was in any actual BO talks, they likely would not have been able to sell shares to raise cash for the buyback.
-The EU launch and sales to date have been terrible so far, so why use well over half your cash when you or some other party can negotiate a better deal after expiration period.