Rich, I hope you don't mind me posting your comment and Thomas' response from SA here:
Rich Steffens, Contributor
Comments189 | + Follow
Hi Thomas. Great writing on the article, very informative. I’m excited for the spin-out of NuGenerex Immuno-Oncology (formerly Antigen Express). GNBT shareholders earning 1 share in the new publicly traded company for every 4 shares that they hold is more generous than what I expected. GNBT shareholders have been loyal through leaner times so that’s great news.
CEO Joe Moscato has been very intent on taking care of his shareholders. I thought it was remarkable for him to give all of his dividends, from the recent 20 for 1 stock dividend to all shareholders, back to the company to use for the shareholder’s benefit. And he convinced 3 three of his major colleagues, who are top GNBT stock holders, to do the same. The benefit has been seen immediately as those shares have been pooled together for usage to make acquisitions of companies without the need to issue new (dilutive) stock. I’ve never seen a CEO and members of his team do that before.
During yesterday’s Conference Call, I asked Dr. Eric von Hofe about the current Phase II research collaboration with Merck:
Me: “If you do find success in (this study) would Merck potentially come-in in a greater partnership role? That’s the hope?”
Dr. Eric von Hofe: “That's certainly the hope and I think it’s also the expectation. I don't think they would have entered into this agreement, if they see the potential for moving forward. So yes, that, that would be the hope.”
That type of partnership involves a financial commitment and is how little unheralded biotech or life science companies become overnight sensations. To borrow Dr. von Hofe’s choice of words- for me that outcome is the expectation.
Once again, great job Thomas!
17 Jan 2019, 07:24 AM
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Thomas Barnard, Contributor
Comments139 | + Follow
Author’s reply » Thanks, Rich. It was nice to hear your voice in the Q & A. I hope you were able to pick up a few shares when GNBT was at the bottom. I thought a bank could auction these technologies for more than what the company was selling for then, but somewhere around the same time I reached out to Joe Moscato when I saw he became CEO. I had spoken to him in 2011, so I remembered him, and I was curious to know if he could turn this thing around. I felt he could, and he seemed to have a plan.
So, two things in your comment struck me. (1) The pooled shares are really important. You're not wrong here. I don't know how he did it, but I presume it must have been along the lines – you can have a big share of something small or a smaller share something much bigger. I don't think his logic is wrong, and some part of that is because Joseph Moscato is at the helm. Those folks that he persuaded will make plenty of money. This is the kind of thing they will be studying at the business schools. Like Captain Kirk's maneuver in the Kobayashi Maru. (2) I think you have made all the right connections on Antigen Express. You asked the right question, and got the response from Eric von Hofe we were all looking for. If it goes well, we can expect more from Merck. But it's a hot area now, and others may start sniffing around.
I know you were interested in the buccal technology, perhaps even more than me owing to your family's history. I would like to see more here. Moscato's plan is build out the doctor network, and then use those profits, but that will take longer than I would like. I would like to see a partner here also. Companies don't care about the pain from the needle. “If they want to live they will endure the needle,” that's the thinking (but we'll call it a pen - maybe they won't notice it's still a needle). So, I think we need to appeal to their greed for sales. You want to sell more insulin? Make it painless.
Rich Steffens, Contributor
Comments189 | + Follow
Hi Thomas. Great writing on the article, very informative. I’m excited for the spin-out of NuGenerex Immuno-Oncology (formerly Antigen Express). GNBT shareholders earning 1 share in the new publicly traded company for every 4 shares that they hold is more generous than what I expected. GNBT shareholders have been loyal through leaner times so that’s great news.
CEO Joe Moscato has been very intent on taking care of his shareholders. I thought it was remarkable for him to give all of his dividends, from the recent 20 for 1 stock dividend to all shareholders, back to the company to use for the shareholder’s benefit. And he convinced 3 three of his major colleagues, who are top GNBT stock holders, to do the same. The benefit has been seen immediately as those shares have been pooled together for usage to make acquisitions of companies without the need to issue new (dilutive) stock. I’ve never seen a CEO and members of his team do that before.
During yesterday’s Conference Call, I asked Dr. Eric von Hofe about the current Phase II research collaboration with Merck:
Me: “If you do find success in (this study) would Merck potentially come-in in a greater partnership role? That’s the hope?”
Dr. Eric von Hofe: “That's certainly the hope and I think it’s also the expectation. I don't think they would have entered into this agreement, if they see the potential for moving forward. So yes, that, that would be the hope.”
That type of partnership involves a financial commitment and is how little unheralded biotech or life science companies become overnight sensations. To borrow Dr. von Hofe’s choice of words- for me that outcome is the expectation.
Once again, great job Thomas!
17 Jan 2019, 07:24 AM
Reply
2
Like
Thomas Barnard, Contributor
Comments139 | + Follow
Author’s reply » Thanks, Rich. It was nice to hear your voice in the Q & A. I hope you were able to pick up a few shares when GNBT was at the bottom. I thought a bank could auction these technologies for more than what the company was selling for then, but somewhere around the same time I reached out to Joe Moscato when I saw he became CEO. I had spoken to him in 2011, so I remembered him, and I was curious to know if he could turn this thing around. I felt he could, and he seemed to have a plan.
So, two things in your comment struck me. (1) The pooled shares are really important. You're not wrong here. I don't know how he did it, but I presume it must have been along the lines – you can have a big share of something small or a smaller share something much bigger. I don't think his logic is wrong, and some part of that is because Joseph Moscato is at the helm. Those folks that he persuaded will make plenty of money. This is the kind of thing they will be studying at the business schools. Like Captain Kirk's maneuver in the Kobayashi Maru. (2) I think you have made all the right connections on Antigen Express. You asked the right question, and got the response from Eric von Hofe we were all looking for. If it goes well, we can expect more from Merck. But it's a hot area now, and others may start sniffing around.
I know you were interested in the buccal technology, perhaps even more than me owing to your family's history. I would like to see more here. Moscato's plan is build out the doctor network, and then use those profits, but that will take longer than I would like. I would like to see a partner here also. Companies don't care about the pain from the needle. “If they want to live they will endure the needle,” that's the thinking (but we'll call it a pen - maybe they won't notice it's still a needle). So, I think we need to appeal to their greed for sales. You want to sell more insulin? Make it painless.
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