I am wondering if anyone has insights on the decline of ARCA (ABIO) from $2.5 to $1 in the August timeframe. Was this entirely about the pending study review? I notice on the cash flow that they issued a lot of stock just prior to the decline, so I guess you could build a case for this being partly about dilution as well.

It looks like this company is only carrying about a quarter’s burn rate of cash on the balance sheet. So if they were to ever have a bad study result, the trip to bankruptcy would be quite rapid. This might also account for the extremely low valuation.

I realize that biotech investments are highly speculative and driven by science.

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