The market’s reaction to Relypsa’s levered boring, through a $150M secured debt offering, is good and bad news. It depends on an investor’s time frame. For short-term speculators, buying the stock will prove unprofitable. Longer-term, the cash infusion should help the company move forwarded with ZS-9. Relypsa’s funding is happening just weeks before the ZS-9 PDUFA. By securing funding, Relypsa will likely hold sole possession for the chronic indication of ZS-9. High lending rate Investors may frown on the 11.5 percent interest rate on the loan. The company either believes its Veltassa will sell on the markets. The cash flow will suffice in servicing the loan. Conversely, management might be finding lending markets difficult. If lenders are not confident, Relypsa must sell its drug so well that the high interest rate does not matter. Expect more downside risks in the next few days. It will subside. When that happens, look at Relypsa again.