Earlier this month, BioSante Pharmaceuticals'
I guess not.
BioSante announced today that it is raising $45 million by selling 16 million shares at $3.00 a pop. That's a 17% increase in the share count at a 3% discount to yesterday's closing price, which certainly doesn't look like tide-us-over-until-we-get-a-deal-done money to me.
What have we learned from this? Sticking a for-sale sign on the front lawn isn't enough to find a buyer. It didn't work for Biogen Idec
As I said previously, companies that sell erectile dysfunction drugs -- Pfizer
We also learned that BioSante isn't the best market timer. Raising capital earlier this month when shares briefly touched $4.00 per share would have been a lot less costly for investors. Maybe "many, many" deals were in the works then and they all fell through. Or maybe management was hoping shares would go higher.
Welcome to the club.
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Click here to see his holdings and a short bio. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services have recommended buying shares of GlaxoSmithKline and Pfizer. 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.