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Nektar Therapeutics Message Board

  • hoyas012 hoyas012 Aug 4, 2011 7:15 PM Flag

    Tough call to swallow

    Masuoka left in an expected, pre-planned fashion but there was no announcement as to same in advance? Tough to swallow.

    HR plans to spend 100 million on his phase 3 lark but doesn't plan to say anything about why we should be concerned over the failure of the robust ORR to translate to an equally robust OS that provides reasonable hope for getting the better of Eribulin? Tough to swallow.

    HR keeps repeating the same Talking Points on the AZ program without saying anything about why he thinks that 118 will not suffer the same fate as Entereg on long-term safety? (this one is a little more acceptable since AZ now has to vet anything he says about 118, but we know the issue is out there looming large . . . .)

    HR plans to spend all this money without saying a word about whether he will, if necessary, dilute shareholders again at these depressed prices? Stock would have jumped 10 percent tomorrow if he had said: "Understand, under no circumstances will we spend 100 million on this trial if it means diluting shareholders at these prices. We will come up with the money another way or we will suspend the trial until we do."

    This company has an awful lot going for it, but there is a woeful lack of candor from HR on the key challenges the company faces. Seems like he's trying to wish them away . . . .

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    • Another example of a company's monetization:

      "Apricus Bio, a San Diego based revenue-generating pharmaceutical company, has leveraged the flexibility of its clinically-validated NexACT(r) drug delivery technology to enable multi-route administration of new and improved compounds across numerous therapeutic classes. Revenues and growth are driven from out-licensing of this technology for the development and commercialization of such compounds to pharmaceutical and biotechnology companies worldwide. In addition, the Company is seeking to monetize its existing product pipeline, including its first product, Vitaros(r),..."

    • Dcx,

      It could be if a company is ready to close doors or has to declare bankrupcy which is not the case for NKR.

      of course the preferred method among the 2 I listed is just pledging the proceeds as security for a loan. Abset that, monetization is a good option that I think NKTR could persue and be able to get decent money for one of its pipelines. The below quote gives an example of one way it was used as...

      "Then on April 19, Black Horse Capital Management wrote to Celera proposing to pay up to $205 million for Celera’s Odanacatib drug. According to Black Horse, the exact amount would depend on receipt of approvals from the Food and Drug Administration and the drug hitting certain sales targets that exceeded $1 billion."

    • Like I said in earlier post, the "as most of you already know" w/ reference to Lorianne really rubbed me the wrong way. It's effectively an admission that institutional shareholders have an inside information advantage. If HR doesn't think a SR VP transition not disclosed openly coninciding with a price slide is a material issue he is clueless. Even if it really is a "personal reasons" issue (which is the standard language that makes people roll their eyes) IMO HR has opened the door to litigation. He admitted institutional holders had information we were left speculating about here. If any of them were sellers through this decline that does not look good (it isn't good) in fact it looks downright innapropriate. I have seen this stuff go down first hand and saw reality vs the public face of what was going on, so I am very sensitive to appearance of impropriety in a biotech.

      I still love the company, and the valuation here seems like a ridiculous opportunity, but my faith in the man behind the wheel is fading fast. A Ferrari with a drunk at the wheel is still a bad situation no matter how incredible the car may be.

      • 1 Reply to cow_4_beans
      • "I still love the company, and the valuation here seems like a ridiculous opportunity, but my faith in the man behind the wheel is fading fast."

        I agree with this. Robin lost a big opportunity yesterday to step out and say, look, this company has too many valuable assets to take dilutive steps at these stock levels. If that means we have to delay 102, then so be it. But rest assured we have many options, and we will not pursue the option of a dilutive financing when the stock has performed in such an enormously disappointing fashion.

        The fact that he did not do so suggests that his strategy may indeed be to dilute us to the tune of another 20 million shares so that he can fund his ill-conceived phase 3 study. This would be enormously disappointing and not in the interests of shareholders -- but query with Robin is concerned about shareholders at all.

11.17+0.46(+4.30%)Oct 2 3:59 PMEDT