The dinner was very painful. Room was packed with about 30 people. Dog and pony show. Audience was not educated at all on high risk biotechs. Not the environment to address the questions I brought with me for sure. So I introduced myself to Marek at the end and said I will be at the bar, stop by and chat if you have a chance after the crowd heads home.
Marek came by the bar and we chatted for a while. A couple interruptions, then they had to go, but still a pretty good chat given the environment. My notes...
Did RP commit a fraud, industrial espionage, a felony? Did he fake any data? Marek does not know for sure but thinks no. His take, the BOD was sick of the “will inject any day” and took action. Also he could not comment on all the swirling allegations around RP. Could have played into it though per Marek but he does not know. My take - who knows, Marek does not really know. He has been barraged with people asking RP stuff from the ex wife. But more important...
Are we in for litigation or proxy fight? Marek’s take was that it is amicable. He thinks or stated there is a standstill agreement in place regarding the 23 million shares. Is Cydy going after the 8 million shares? No. Any issues around the CCR5 IP? No. Cydy has the IP. My take - not sure but gut feel is RP walks away quietly. Will see. Overall, I was satisfied with this conversation.
How much do you need to get to year end? 15 million after TOS. Do you plan to borrow money? No. If we borrow it will be a royalty deal like a factoring arrangement. I put those factoring words in his mouth but I think I understand the point. They may borrow against future inflows after something is signed. My concern is borrowing is very risky if things go south. Like a CRG deal where the covenants get you in trouble. I am involved in private biotechs and get very concerned with borrowing. Borrow only from “friendly” stakeholders is my feeling. I loan to my entrepreneur and he fails to pay me back on time virtually every time. I told Marek I would support the dilution hits over the risk of a poorly thought out loan. Would be nice to have friendly billionaire like GALT does. I did not say that but my thought. Funny thing is he mentioned how he has so many contacts with institutions like Hercules and when we get of OTC it will be a very good thing. I said Hercules pushed one of my investments into BK. So let’s be very careful borrowing. Marek states he thinks non dilutive deals will be done soon to get the funds needed to get past year end. Not the Chinese deal. Other deals. He sees the emails. Lots of action. Also not the prostate diagnostic test deal. Overall, I was satisfied with this conversation.
Regrading Prostate diagnostic testing meeting in August with FDA, that is still a go. Marek could not say who will rep CytoDyn in that meeting since RP is out. But it is still a go. My take - something else may ink in front of it. Knock on wood.
I was going to to ask If NanoString was the negotiating party but forgot. RP I’m interviews alluded to negotiating with a development partner. Wish I asked about that.
Colon cancer IND when? I forgot to ask. Nash - when will preclinical be done - forgot to ask. Sorry Misiu.
mTNBC - what caused the delay? IRBs, new therapy on market, Pestell subtrifuge. - I elected not to ask given the call tomorrow. I feel it will proabably be answered.
Combo - I asked about 525 vs 700 and safety data if 700... but we got all convoluted into mono. So I punted. Overall...Combo still on track for sept. Mono start this year Q4. Label expansion Q4 2020. He thinks combo will be 525. But this was totally twisted conversation.
I wanted to ask Nader for some color around the decision by Progenics to sell in 2012. Researching Paul Maddon on internet my take is he is proud of Pro 140. Did Paul Maddon want to keep his baby going? Did the decision come down after Paul retired day to day from Progenics? Did Paul Maddon invest his own cash in the Paulson rounds? I could tell from the S-3s for sure. One said consulting fees. The most recent did not. I posted on this an I think Trding confirmed Paul Maddon was putting his own cash in. But I cannot remember for sure. Marek seemed to have good answers on the why at the time. My take - the inventor Paul Maddon put his own cash in this last year and has 1.4 million shares. That is positive to me. I am going to follow up with Marek.
I must say I like Marek, was impressed with him and his honesty, and thought he did a good job presenting to that audience. I would rather stick needles in my eye than do that job. Nader did not attend but I am glad I did.
So I am going to continue buying. Will see how it opens tomorrow. My take is we have a month or two of buying opportunity at these levels. I was wrong last time I said that but I usually am wrong. On this I want to be eventually right and long.
Marek came by the bar and we chatted for a while. A couple interruptions, then they had to go, but still a pretty good chat given the environment. My notes...
Did RP commit a fraud, industrial espionage, a felony? Did he fake any data? Marek does not know for sure but thinks no. His take, the BOD was sick of the “will inject any day” and took action. Also he could not comment on all the swirling allegations around RP. Could have played into it though per Marek but he does not know. My take - who knows, Marek does not really know. He has been barraged with people asking RP stuff from the ex wife. But more important...
Are we in for litigation or proxy fight? Marek’s take was that it is amicable. He thinks or stated there is a standstill agreement in place regarding the 23 million shares. Is Cydy going after the 8 million shares? No. Any issues around the CCR5 IP? No. Cydy has the IP. My take - not sure but gut feel is RP walks away quietly. Will see. Overall, I was satisfied with this conversation.
How much do you need to get to year end? 15 million after TOS. Do you plan to borrow money? No. If we borrow it will be a royalty deal like a factoring arrangement. I put those factoring words in his mouth but I think I understand the point. They may borrow against future inflows after something is signed. My concern is borrowing is very risky if things go south. Like a CRG deal where the covenants get you in trouble. I am involved in private biotechs and get very concerned with borrowing. Borrow only from “friendly” stakeholders is my feeling. I loan to my entrepreneur and he fails to pay me back on time virtually every time. I told Marek I would support the dilution hits over the risk of a poorly thought out loan. Would be nice to have friendly billionaire like GALT does. I did not say that but my thought. Funny thing is he mentioned how he has so many contacts with institutions like Hercules and when we get of OTC it will be a very good thing. I said Hercules pushed one of my investments into BK. So let’s be very careful borrowing. Marek states he thinks non dilutive deals will be done soon to get the funds needed to get past year end. Not the Chinese deal. Other deals. He sees the emails. Lots of action. Also not the prostate diagnostic test deal. Overall, I was satisfied with this conversation.
Regrading Prostate diagnostic testing meeting in August with FDA, that is still a go. Marek could not say who will rep CytoDyn in that meeting since RP is out. But it is still a go. My take - something else may ink in front of it. Knock on wood.
I was going to to ask If NanoString was the negotiating party but forgot. RP I’m interviews alluded to negotiating with a development partner. Wish I asked about that.
Colon cancer IND when? I forgot to ask. Nash - when will preclinical be done - forgot to ask. Sorry Misiu.
mTNBC - what caused the delay? IRBs, new therapy on market, Pestell subtrifuge. - I elected not to ask given the call tomorrow. I feel it will proabably be answered.
Combo - I asked about 525 vs 700 and safety data if 700... but we got all convoluted into mono. So I punted. Overall...Combo still on track for sept. Mono start this year Q4. Label expansion Q4 2020. He thinks combo will be 525. But this was totally twisted conversation.
I wanted to ask Nader for some color around the decision by Progenics to sell in 2012. Researching Paul Maddon on internet my take is he is proud of Pro 140. Did Paul Maddon want to keep his baby going? Did the decision come down after Paul retired day to day from Progenics? Did Paul Maddon invest his own cash in the Paulson rounds? I could tell from the S-3s for sure. One said consulting fees. The most recent did not. I posted on this an I think Trding confirmed Paul Maddon was putting his own cash in. But I cannot remember for sure. Marek seemed to have good answers on the why at the time. My take - the inventor Paul Maddon put his own cash in this last year and has 1.4 million shares. That is positive to me. I am going to follow up with Marek.
I must say I like Marek, was impressed with him and his honesty, and thought he did a good job presenting to that audience. I would rather stick needles in my eye than do that job. Nader did not attend but I am glad I did.
So I am going to continue buying. Will see how it opens tomorrow. My take is we have a month or two of buying opportunity at these levels. I was wrong last time I said that but I usually am wrong. On this I want to be eventually right and long.
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