If you have ever been an insider of a company via a BOD you would then know that their are restricted trading windows. Broadfin will have to comply with those. I see no problems here.
Can't help but feel like something is up based on the absolute silence for quite some time. As we all know there have been many opportunities for press releases that have not been taken advantage of.
Anyone else feel this way or have any thoughts?
We are in an interesting place with Cardica. While this feels like the darkest hour we are actually in the best position. Now have an experienced BOD with healthy conflict that will create pressure that creates intense focus. Cardica has been all over the place. Introducing many new products, iterations of Microcutter 30, 45 etc. With limited capital they need to get it right and have a broad launch. Can't keep introducing new iterations with limited launches. Very confusing to customers and investors. Also very costly to keep scrapping old inventory and then building enough for current customer base. I think getting to a final design of the 30 and seeking a US marketing partner is the key. Can't compete in a duopoly by adding a few reps each quarter. Never will hit the "S" Marketing curve of adoption. I feel better about broadfin because they really have smoked out all the BS and lack of transparency on earnings calls. Also feel we need a real CEO commercially proven that can sell large customers, marketing partners and investors. Make Hausen the Chief technology officer where he can focus on getting the products right. BOD was old, out of touch and comfortable. Company has enough money to complete development of exchange 30, 45, and build inventory. Find a marketing partner that will take on the cost & execution of commercialization. Probably best time to invest in CRDC. Once we complete the shareholder meeting, I'm sure management will hold a conference call to explain to investors and customers. Tax selling will also be behind us.
I don't understand the concern about Broadfin taking cardica private. Cardica is still a development company that is losing money. Hedgefunds are not in the business of taking on a company that is losing money. They will however invest in a company that can increase in value. Owning stock and being responsible for making a profit of an operating company are two very different things. Broadfins expertise is in investing. They see an undervalued asset that has huge upside.
Who's Thompson-Pique? I googled the name and nothing comes up.
Who just handed those shares to BF? Has to be a large insider! You would think stock price would rise on BF letter as most stocks with shareholder activists do. What does this say about BF?
Broadfin Healthcare Master Fund, LTD, or Broadfin, has initiated a proxy contest with respect to the election of directors at our 2014 annual meeting of stockholders, or the Annual Meeting. Broadfin is proposing to solicit proxies in opposition to us for the purpose of voting in favor of its three nominees for election to our board of directors. Further, in discussions with Kevin Kotler of Broadfin, Mr. Kotler had expressed a desire to replace our chief executive officer, Dr. Hausen. Our business, operating results or financial condition could be harmed by the proxy contest because, among other things:
responding to the proxy contest is costly and time-consuming, is a significant distraction for our board of directors, management and employees, and diverts the attention of our board of directors and senior management from the pursuit of our business strategy, which could adversely affect our results of operations and financial condition;
perceived uncertainties as to our future direction, our ability to execute on our strategy, or changes to the composition of our board of directors and our chief executive officer, may lead to the perception of a change in the direction of our business, instability or lack of continuity which may be exploited by our competitors, cause concern to our current or potential future customers and suppliers, and may result in the loss of potential business opportunities and make it more difficult to attract and retain qualified personnel and business partners;
the expenses for legal and advisory fees and administrative and associated costs incurred in connection with responding to the proxy contest and any related litigation may be substantial; and
we may choose to initiate, or may become subject to, litigation as a result of the proxy contest or matters arising from the proxy contest, which would serve as a further distraction to our board of directors, management and employees and would require us to incur significant additional costs.
3119 Preclinical Mechanistic Studies Investigating Neutrophil and Lymphoid Cell Depletion By IMGN529, a CD37-Targeting Antibody-Drug Conjugate (ADC)
Program: Oral and Poster Abstracts
Session: 625. Lymphoma: Pre-Clinical – Chemotherapy and Biologic Agents: Poster II
Sunday, December 7, 2014, 6:00 PM-8:00 PM
West Building, Level 1 (Moscone Center)
Jutta Deckert, PhD1, Jose F. Ponte, PhD2*, Jennifer A. Coccia2*, Leanne Lanieri2*, Sharon Chicklas1*, Yong Yi1*, Krystal Watkins3*, Rodrigo Ruiz-Soto, MD, MSc4, Angela Romanelli, PhD5* and Robert J. Lutz, PhD6
1Discovery Research, ImmunoGen, Inc., Waltham, MA
2Pharmacology&Toxicology, ImmunoGen, Inc., Waltham, MA
3Biomarker, ImmunoGen, Inc., Waltham, MA
4Clinical Development, ImmunoGen, Inc., Waltham, MA
5ImmunoGen, Inc., Waltham, MA
6Translational Research and Development, ImmunoGen, Inc., Waltham, MA
2321 The Antibody-Drug Conjugate (ADC) IMGN779 Is Highly Active in Vitro and in Vivo Against Acute Myeloid Leukemia (AML) with FLT3-ITD Mutations
Program: Oral and Poster Abstracts
Session: 616. Acute Myeloid Leukemia: Novel Therapy, excluding Transplantation: Poster II
Sunday, December 7, 2014, 6:00 PM-8:00 PM
North Building, Hall E (Moscone Center)
Kathleen R Whiteman, MS1*, Paul Noordhuis, PhD2*, Russell Walker, MS1*, Krystal Watkins, MS1*, Yelena Kovtun, PhD1*, Lauren Harvey, BS1*, Alan Wilhelm, BS1*, Holly Johnson, BS1*, Gerrit Jan Schuurhuis, PhD2, Gert J Ossenkoppele, MD, PhD2 and Robert J. Lutz, PhD1
1ImmunoGen, Inc., Waltham, MA
2Department of Hematology, VU University Medical Center, Amsterdam, Netherlands
AMG 595 and AMG 172 Glioma and Renal Cell Carcinoma, respectively - Data from partnered programs Q4:14
IMGN779 AML Preclinical data at ASH Dec 2014
IMGN529 Non-Hodgkin's lymphoma Additional Phase I data - ASH Dec 2014
Didn't listen to conference call? If it weren't for the GSK service revenue, they would be down 30% thus the 20-30% restructuring. All of their business resides with the cardiovascular specialty labs that are now under fire from the OIG. Their business is declining. As the one analyst also asked if they had seen any impact from a Major Payer (Cigna) suing their largest customer Health Diagnostic Lab 85million. The PLAC activity is to hopefully save some business when the current method goes off patent next year. The CHF test is just going into development so much work yet to be done before going to market and yet to be determined if its a valuable marker of BNP. I do not see anyone wanting to acquire this company.
As much as I'm not thrilled about BF's tactics, let's be very honest with the simple fact that if there was more demand for the stock, Cardica management wouldn't have to worry about BF.
Celldex said yesterday that enrollment into the phase III study of glembatumumab (CDX-011) in patients with triple-negative breast cancer was slower than had been expected and as a result the company will broaden the study's eligibility criteria. Enrollment into the study now will continue into 2016, longer than had been previously expected by investors.
Amgen’s Ovarian Cancer Treatment Trebananib Fails To Meet Secondary Endpoint Goals for Overall Survival
We need some good progress on 853 and 289! IMGN Value will dramatically change!
There are five main areas in which management should take steps to keep activist investors away:
1. Improve Performance: Are revenue growth, profit margins and returns on capital adequate in each major
business area? Are there opportunities for improvement? Seek to better utilize all unutilized capacity, since this can drag down returns on capital. Reduce bureaucracy that adds cost, complicates decision making and breaks down accountability. Discontinue all activities that don’t earn adequate returns because these are magnets for activist investors.
2. Allocate Capital Better: Do you have the right balance between organic investment, acquisitive investment,
dividends and buybacks? Are investments made in the right areas? Do you invest more where returns and growth opportunities are high, and vice versa?
3. Strengthen Competitive Advantages: Are your competitive advantages adequate to support growth and
sustainability? Do you invest enough in research and development? Brand-building marketing? Employee
training? Weakening competitive advantages cause low valuations and can be an invitation to activist investors.
4. Separate Unrelated Businesses: Is management distracted by trying to run too many different kinds of
businesses? Are smaller, fast-growing business areas stifled and investing less than they would as stand-alone companies?
5. Strengthen Corporate Governance: Do your incentives motivate managers to think and act like owners? Do they treat the capital of the company as they do their own money? Have executives been overpaid relative to the performance they have delivered? Activists will rarely enter a stock just because of poor governance, but egregious compensation an
In the wake of Darden’s upheaval, strident opposition by boards is likely to disappear. It simply doesn’t pay. Even the most ardent anti-activist firms know it.
This trend is already taking hold. So far this year, activists had a success rate of 72 percent in proxy fights, up from 60 percent in 2013, according to FactSet SharkRepellent, a research firm.
Activists are gaining ground because institutional investors are increasingly willing to side with them, and even joining the fight (or ganging up, as some companies might say). These shareholder forces are often given an assist by two prominent shareholder proxy firms, Institutional Shareholder Services and Glass Lewis. But this is not a surprise as activists tend to focus on struggling companies in need of change.
It all adds up to pressure-cooking corporate boards. And as hedge funds have proved to be successful in their activism, earning extraordinary returns as a result, billions more in money is following. It is a virtuous circle, or a vicious one, depending on your perspective. At least until the returns go away.
That is why the loss at Darden, coming after Sotheby’s capitulation, is such a milestone. After the Darden fight, companies are not going to want to go the distance. It is too much misspent money on advisers in a fight that results in a loss of face.
In addition this proxy battle will cost money further taking capital away from executing a successful microcutter launch. How does that help us shareholders?
Agree with Ernie, BF knows the answer to that. If they didn't sell off in the secondary IPO we would have raised the same amount of money with half the shares. They sell off or keep a lid on the price every time we have good news to drive shareholder frustration to gain votes for their BOD members. They are really beginning to get their legs with product development and new introductions. If they weren't screwed in the secondary by BF they could have hired more reps for the commercialization. These guys thus far have not helped us shareholders and for that reason I cannot give them my vote.
now the short shaft is launched and we are down? This smells to me! Let's see if Levi & Korinsky follow this press release with one of their own again to blunt the good news today. Timing of Broad Fin and class action by a major law firm on a microcap company is very coincidental!
Sentiment: Strong Buy
Cardica preferred offered at a price to the public of $0.85 per share, and 191,474 shares of its Series A convertible preferred stock, offered at a price to the public of $85.00 per share. The Series A convertible preferred stock is non-voting and is convertible into shares of Cardica common stock at a conversion rate of 100 shares of common stock for each share of Series A convertible preferred stock, provided that conversion will be prohibited if, as a result, the holder and its affiliates would own more than 9.98% of the total number of shares of Cardica common stock then outstanding unless the holder gives Cardica at least 61 days prior notice of an intent to convert into shares of common stock that would cause the holder to own more than 9.98% of the total number of shares of common stock then issued and outstanding.
Sentiment: Strong Buy
I think Hausen would make a great Chief Scientific Officer. If they are going to become a real commercial sales organization then yes they need a new CEO. If they are really all about development and then selling company, there is no need for change.