As one might expect, the interest was centered on the litigation with Siga. Nobel Financial's guy did them the courtesy of asking about their programs first, and then asked a question focused on Siga's revenue recognition plan for the BARDA contract and what impact it might have on PIP's ability to collect profits, if the appeal's court affirms. Richman juggled it the best he could, but ultimately said he didn't know.
Next came Aegis' guy, Raghuram Selvaraju, who went right into Siga, asking what PIP appealed against. Their legal counsel answered saying they appealed the ruling that the terms of the LATS were not in and of themselves binding, and that they should be enforceable. He then asked about pricing for 246 and how it might change in the future, which Richman couldn't answer. Lastly he asked about their next generation anthrax product, which the CSO would not talk about.
The last questioner was David Nierengarten of Webush
He followed up on the revenue recognition question, asking again what impact it might having on the timing of PIP's access to Siga's contract revenues. Richman didn't really answer this question again and handed it off to the CFO, who said she didn't have anything else to add, but that Siga has certain rules and standards they must follow as a public company and that PIP would protect their interest if the decision is upheld.
When David attempted to ask a follow up question on the same topic, he got 2 sentences into it when the operator abruptly cut him off saying they were out of time. Now do you think he was told to do that? ;)
Wow that was a weird call. I've never heard of an analyst getting cutoff mid-question. I agree with easttennessee, the revenue recognition process is throwing PIP for a loop. They may be scrambling to try to figure how they'll survive another couple years without seeing any of that money. They only have enough money to last through early 2014 according to todays CC.
I listened and found the last part where David was abruptly cut off most interesting. They clearly did not want to let him get the follow up question out much less have to respond to it. The revenue recognition is definitely worring PIP. They can expect a really bad report from David.
To me, Richman sounded like like he was a little uneasy about the upcoming ruling. It was almost as if he was going out of his way to repeatedly warn that the biggest issue facing PIP is getting through it with the 50-50 split intact. Kind of weird, not his usual bravado...