Introduction
Strongbridge Biopharma (SBBP) is a commercial stage biopharmaceuticals company engaged in the development and commercialization of therapies for rare diseases with significant unmet needs. The company currently markets two drugs (Macrilen and Keveysis) and has another (Recorlev) in Phase 3 trial status. Unfortunately, the recent clinical data indicates several red flags in the company's R&D process. Moreover, SBBP is using cash at nearly 2.5 times its incoming revenues, with its key products possessing questionable financial performance. All of the above are warning signs to a looming equity dilution estimated in the 40%