Excerpted from the 4/22/15 shareholder meeting bulletin -
percentage of ownership based on 16,137,898 shares outstanding as of 4/15/15:
Seth Lederman - 621,183 shares or 3.80% of the company
Officers and directors own 1,544,612 shares or 9.21% of the stock ...
Deerfield Special Situations fund, Broadfin Capital and Technology Partners hold an aggregate 3,700,886 shares or 22.73% of the issued shares ...
Dr Lederman also holds a series of stock option grants struck at various prices ...Ex- 30,135 option shares@ $30 per share expiring 5/9/22 , 41,250 option shares @ $10.20 expiring 2/12/23, 71,000 option shares @ $15.88 expiring 2/11/24, 100,000 option shares @ 9.87 expiring 6/17/24 and another 100,000 option shares @$6.88 expiring 10/29/24 ...
Dr Lederman earned an aggregate $2,853,578 from TNXP in 2014 ...( whew ...that's high )
Ok ..I like the fact that the "insiders" and officers of the company are knee deep in TNXP shares ...it demonstrates commitment and belief in the company and concept of business going forward ...The large amount of out-of-the-money option contracts that extend thru 2024 also reflect that the corporate officers and insiders are taking some of their compensation in $30 stock options, $15.88 stock options and $9.87 stock options ...which are essentially worthless unless and until the market price of TNXP passes thru the option strike price ...and then they begin to take on a value that can be cashed in. ( taxes and paying for the options themselves suck up a lot of the cash ...so, for example, a $30 stock option needs to be market trading significantly ABOVE $30 for it to have serious value ...)
This are all BULLISH indicators for TNXP ...and might even explain the comparatively low volume in the public float ...( a large percentage of shares are being held by insiders and investment venture capital firms who are looking for a huge return, far from day trading or short term trading TNXP )
Hope this proves helpful
Sentiment: Strong Buy
I have a close friend who has been a long term diabetic and has been using the insulin pump and monitor ...This friend has been following Afrezza and doing her homework to include contacting Sam Finta, and others. She visited with her PCP and ENDO , who are both well respected and conservative in her community.
Initially, there was not much information and both physicians expressed their reluctance to jump on something so new and unknown. ( here in Texas, medical malpractice lawyer commercials seem to run about every 10-12 minutes on the TV , weather we need them or not )
That has ALL changed over the last 3-5 weeks as both physicians have been contacted by Sanofi reps and her Endo knew exactly how to refer her for the lung test ...and what to do when the results came back ( 1-2 days )
Here is a portion of her e-mail to me this afternoon ....
After getting two calls today from my doctor's office that I had passed the lung test and that they would send a prescription to my pharmacy for the Afrezza and then a call to tell me after I received the Afrezza to make an appointment to come to the office for training (they are in training now, I will be the first patient), I called my pharmacy and they said they can't get it. Their wholesalers don't carry it. I called Walgreens (which I hate to do) and they said that they could have it in the next day. I need to check with my insurance company first and see what this is going to cost. Anyway, looks like I'm good-to-go!
Summary - Her Endo and his office staff are themselves IN TRAINING , Walgreens reports a one day delay in filling Afrezza prescriptions , her Endo provided her a discount card for a FREE initial prescription and a $30 refill until the promotional period ends.
It appears that Sanofi DOES in fact have a significant marketing development program in process ...and are actively TRAINING groups of ENDOS and PCPs.
This says a lot of good things to me ...hope you find it helpful.
A friend recently visited her Endo and received a prescription for Afrezza after a detailed consultation and lung test.
The doctor ALSO issued her a prescription discount card with Sanofi's logo imprinted on it that offered the first month of Afrezza for free and subsequent refills at a maximum cost ( when coordinated with insurance coverage of $30 per refill )
The discount states that this program will last an unspecified time or until Sanofi decided to stop it.
Ok , if this one Endo is fairly typical of specialists in the diabetes treatment arena, and he has a pad of major league discount coupons to issue to his patients along with their Rx; would this explain why the sales volume number came in so weak ?
Why would anyone pay for an Afrezza prescription when they can get the first 30 days for FREE ? and subsequent refills for a maximum of $30 ?
While pondering that question ...consider if the discount coupon campaign is proof of at least a minor campaign on the part of Sanofi to market the inhaled insulin ....something that many posters here have been asking for ???
Finally ...my friend was at her PCP office earlier this week , in Ft Worth, Texas ...and the PCP mentioned in passing that he was attending a local meeting / conference sponsored by Sanofi with the sole item on the agenda being ..( wait for it ) ...Afrezza. He also stated that he expected to see her Endo there , along with a bunch of other interested physicians.
Perhaps they are attending the dinner / conference with the express purpose of consuming the jumbo shrimp and white wine spritzers ...but...at least Sanofi is trying to get their attention far beyond the 10 minute "grip & grin" sessions allocated for the doctor's offices on Tuesday and Wednesday mornings ...
Feels like the roll out of an advanced marketing program ....( can only hope )
AOD is trading right at $9.01 per share at this writing and with an NAV of $10.51. That's the basis for the performance review.
First - the discount to NAV is -14.27% which is compelling in of itself, but lets look at how the NAV has performed over the last six months or from Oct 15,2014 when it was quoted at $9.27 here on Yahoo.
The NAV or underlying value of the stocks inside the AOD portfolio has INCREASED by +13.38% ...That is certainly a very healthy indicator and frankly one we have not seen much of from this mutual fund over the past 4-5 years.
Total Return Performance - Trailing 1.3 year period Vs the S&P 500 with dividends reinvested = +20.25% for AOD and +17.34% for the S&P index.
YTD performance - AOD - +7.01% Vs the S&P 500 index - +2.68% ( that works out to a 433 basis point jump on the popular S&P index in a bit less than 120 days of duration )
Maybe, just maybe, we are FINALLY going to get a Top Performance year from the new managers ( 3 yrs on the job ) at AOD.
AOD has legitimately EARNED it's reputation as the scourge of the mutual fund industry with a split adjusted $40 IPO price and, at times, a seemingly out of control portfolio turnover rate of 600% + each year which eliminated the term INVESTMENT DURATION from its language ....as there practically was none. Even with Apple as one of the top holdings ...you have to hang on to it to make any money ...and they just preferred to trade it ...
The new managers have increased the dividend, reverse split the stock, reduced portfolio turnover to a more rational level, launched a share buy back plan ....and most importantly improved the NAV and overall market performance to habitable levels. They may have turned this ship around.
Their six month fiscal year report thru April end 2015 will make for interesting reading ...
As a long term holder ( did some tax loss selling in 2014 -ouch ) and frequent critic of Alpine management; I just have to say ..they have done well on a 1 yr and ytd basis