Goly & Rez,
* CPL = Cadila Pharmaceutical Ltd.
* CPLB = CPL Biologicals = Joint venture with NVAX.
* They'll keep extending the deadline until NVAX needs services that CPL or CPLB can provide (CRO, manufacturing, etc.)
* NVAX collects 20% of the profits (not sales/revenue) made by CPLB.
* When CPLB was formed, the World was facing the greatest depression in history, NVAX finances were 666 feet under, and NVAX candidates/clinicals/manufacturing were at an early stage. The deal was very fair at the time (and still is). Rahul did good by striking that deal. Also, Lambert played a major role in it, perhaps bigger than Rahul's. Nobody was fired because of the CPLB deal.
* Rahul and others were fired because of one or more of: Blunder related to the progress of large-scale manufacturing; insufficient experience with RSV; internal politics; inability to lead NVAX to the next era.
Thanks for your reply. I did search for past threads before posting and came up short. Unfortunately your take on the linked thread is not your best work.
I am a long term investor in this stock and do not really see 7.5 million as being insignificant, especially given the current cash on hand and quarterly burn rate. The BARDA money is for an inhouse solution so I am not sure whether any BARDA reimbursed work can be done at Cadila.
My current take was that this was a gamble based on the Avimex deal. Avimex was supposed to finance the trial and provide distribution only so manufacturing in India probably made sense.
Unfortunately the new website that we were eagerly awaiting fails to put Avimex up as a partner.
As the company states that FDA approval is anticipated in in 2014, spending 7.5 on manufacturing before March 2013 may be a stretch.
Reading the tea leaves, this actually may be the reason for the departure of Rahul and a few other key members of management.
I do not see this as a death knell for NVAX but it appears to be a significant hurdle. RSV cash could make the hit fairly insignificant and my original question as to whether something like the rabies trials could be pushed that way is suspect as the joint venture in my mind is separate from Cadila.
NVAX has only managed to spend 200k so far and given the pace of things (I remember Bob Freeman talking about the IND process), March 2013 is not really light years away.
As Rez pointed out, the company is hiring someone to be a CPL liason so by hook or by crook, the money will be spent or the agreement amended. At this point we have a deadline so things will be interesting. It could be a payoff for Modi or simply protection in the face of a buyout.
My only beef is that this is a significant issue and none of the knucklehead analysts on the countless calls have even broached the subject. Almost makes me yearn for Ken TVbitch(not really).
In summary I will write it off as a bad decision and likely a reason for the current share price. My interest is how this money will be spent in the upcoming year. Perhaps there is something we have failed to consider?
OMG! I've just read my posts in the topic I referenced. I forgot that I attacked everyone in it.
Sorry, guys. I must have been cranky that day.
Apologies to everyone I insulted in that topic.
Nothing to worry about. They will use your money to pay. So as you can plainly see its no skin off their noses. It's just another scheme to seperate you from your money.
Sell the loser and buy a winner. Sell nvax and buy BNVI.
I was planning on bringing this up when it was released. What is your take on this agreement? It looks like Cadilla rather than the joint venture so what type of services would they actually plan to use under such an agreement. 7mm is a decent chunk of change. I would appreciate yours or any other knowledgeable poster's thoughts on this contract
I'm no expert, but this issue is being revisited and I remember pondering what the 7.5 million was for in the orriginal agreement.
Here's my simple take on it. CPL was set up with NVAX to build CPL Biologicals. That plant was to produce stuff/vaccines to sell to India and that part of the world, (just seems logical to me). NVAX thought that by 2012 they would have vaccine approval on some level and would be able to produce and sell vaccines through CPL\B.Then Barda came in and delayed the production time frame about a year or 18 months. This is because Barda demanded more Phase 2 testing and of course phase 3 testing. The Mexican trials were not considered to be acceptable as phase 2 by BARDA or the FDA.
So, because approval was pushed a year or so farther into the future, and because India is apparently unwilling to allow drug sales to India that do not have FDA approval for an american made and designed vaccine.. VOILA...
we have to get a one year extension on the agreement with CPL. The way I read the amendment (after casually glancing at it), it doesn't cost NVAX any new unplanned expenditures.
So all is well and Stan can sell the company for 7 bucks/sh. 'Way to go' Stan.
looks like an insider buying flury shortly after that agreement.
hope to hold ground today.
full disclosure here - i have more shares than driscoll but less than evans. i also bought all my shares under $1 on the advice of our board bashers so i am up more than 100 %