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Two board members at ZIOP spoke privately about the rationale for the financing that dented the stock today. They had enough money to take the palifosfamide to the finish line and to get started with indibulin, but they did not have enough to manufacture the oral palifosfamide ($10mm) with which they want to do some pilot work in breast and cervical cancer. Nor did they have the money to do the darinaparsin phase III which they can commence right away ($20mm). They no longer want to partner palifosfamide, but will consider partnering darinaparsin.
They did not want to be beholden to the markets or big pharma for financing in a shaky market and apparently Fidelity had a big appetite for this offering as did Putnam and Wellington. Fidelity now owns close to 20% of the company. In terms of Big Pharma interest, the CEO has meetings from 6a.m. to 12 p.m. every day of ASCO. The delay in the Special Protocol Assessment is largely due to the CEO because any minor amendment to the protocol invalidates the SPA, so he is taking his time to make sure it's perfect before submission. Best I can tell he has now submitted it. ZIOP has the $ to complete both phase III's and move indibulin to the next inflection point. Their stated goal is to be out of the company in 18 mths for $20/share not including any value for indibulin. Both directors believe that moving all programs forward will add significant value to an acquirer in the long run at the expense of some disgruntled short term investors.

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