The last seven days were filled with dilutive offers, as biotechs seek to raise cash off the backs of their shareholders. However, it comes with the territory of the space, as these small cap companies generally burn through cash trying to fund the next blockbuster drug with limited sources of financing available to them. Of course, that doesn't make it any better when dilution comes to your doorstep. Motley Fool health-care analyst David Williamson takes a closer look at AVEO (NASDAQ:AVEO)and what the company's capital raise means for investors and the stock going forward.
The relevant video segment can be found between 8:31 and 10:39.
David Williamson owns shares of Pfizer. Follow him on Twitter @MotleyDavid. Max Macaluso has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.