The Vyera deal
Post# of 153903
(Total Views: 476)
Posted On: 01/28/2020 8:58:24 AM
The news of the FTC civil suit against Vyera is not good for CYDY. They will need to direct money and resources for their legal defense and procedures.
Several outcomes are possible: they settle promptly and pay a hefty fine, that would be the best. Another option is they fight for many years and, at the end, somebody wins a pyrrhic victory. I really hope that, by then, Shkreli will be out of view and with no relation with Vyera (if this is not the case now).
Which brings the point of Shkreli. We were told that he was not related with Vyera anymore. The FTC seems to think otherwise, it remains to be seen if we were lied to or, simply, decided to look the other way. Per Vyera’s own admission the investigation had been running for 4 years. I hope they told CYDY this before signing the contract.
As far as CYDY is concerned, we need a good commercialization partner. Vyera was the best we could get and the suit only weakens Vyera on detriment of CYDY.
These things take time to resolve, in our case, we have 6 months (probably less) to ascertain what is the best venue. The questions is: will Vyera, under civil action, effectively sell Leronlimab ??. One could argue that, to a great extent the sales force will not be affected by this and the landmark payments are originated in sales, so CYDY will receive its dues, however, the point of being associated with Vyera, under FTC action, will likely impact sales negatively, at the beginning at least.
We as a company are much stronger now (in basis of the Oncology results) than we were few months ago. However, the HIV commercialization is the stepping stone for revenue. In light of the potential financing that NP negotiated recently (San Francisco) and the terms of Vyera’s contract, I am sure CYDY BOD’s should be re-assessing the relationship with the latter.
Please note, I am not advocating the termination of the contract as, first, I don’t know if this is possible and, second, I don’t know how deep are the economical implications for Vyera in regards to the FTC suit (it might be of small impact, or, simply wrong). I am just saying that NP and the BOD should take another look and get together with Vyera, request explanations (if hey where not candid with us) and make a decision on what is best for CYDY interests down the road.
Several outcomes are possible: they settle promptly and pay a hefty fine, that would be the best. Another option is they fight for many years and, at the end, somebody wins a pyrrhic victory. I really hope that, by then, Shkreli will be out of view and with no relation with Vyera (if this is not the case now).
Which brings the point of Shkreli. We were told that he was not related with Vyera anymore. The FTC seems to think otherwise, it remains to be seen if we were lied to or, simply, decided to look the other way. Per Vyera’s own admission the investigation had been running for 4 years. I hope they told CYDY this before signing the contract.
As far as CYDY is concerned, we need a good commercialization partner. Vyera was the best we could get and the suit only weakens Vyera on detriment of CYDY.
These things take time to resolve, in our case, we have 6 months (probably less) to ascertain what is the best venue. The questions is: will Vyera, under civil action, effectively sell Leronlimab ??. One could argue that, to a great extent the sales force will not be affected by this and the landmark payments are originated in sales, so CYDY will receive its dues, however, the point of being associated with Vyera, under FTC action, will likely impact sales negatively, at the beginning at least.
We as a company are much stronger now (in basis of the Oncology results) than we were few months ago. However, the HIV commercialization is the stepping stone for revenue. In light of the potential financing that NP negotiated recently (San Francisco) and the terms of Vyera’s contract, I am sure CYDY BOD’s should be re-assessing the relationship with the latter.
Please note, I am not advocating the termination of the contract as, first, I don’t know if this is possible and, second, I don’t know how deep are the economical implications for Vyera in regards to the FTC suit (it might be of small impact, or, simply wrong). I am just saying that NP and the BOD should take another look and get together with Vyera, request explanations (if hey where not candid with us) and make a decision on what is best for CYDY interests down the road.
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