|ITEK .. seeking alpha article... |
liquidation seems preferable at this point. if a reverse merger, I would hope a partial share tender (for dissenters) would accompany it.
Inotek Pharmaceuticals: A Graham-Dodd Style Cigar Butt Investment
Aug. 22, 2017 12:59 PM ET
We present our case that a sale of the company may result in 50-100% upside potential for common stockholders.
Inotek Pharmaceuticals ( ITEK) stock has repeatedly disappointed its investors recently, first after a phase 3 monotherapy trial of trabodenoson failed to meet its primary endpoint in the treatment of glaucoma in January this year and the second time when a fixed-dose combination trial of the drug failed in phase 3 recently. The management announced that it has decided to discontinue the development of trabodenoson in all preclinical and clinical indications and is seeking 'strategic alternatives' through investment banking firm Perella Weinberg Partners.
Several recent articles ( link 1, link 2) have thrown more light on this situation and the value in the common stock at this price level. We agree that the common stock has a limited downside at this price level and has more than 50% or maybe >100% upside potential.