The intriguing implications of hiring a new CFO no

The intriguing implications of hiring a new CFO now.

The response of our board and the market to the PR announcing the appointment of Robert Hoffman to replace interim CFO Mitch Cohen seems to have produced a collective yawn. After all, I haven't read a single post today blaming Mr Hoffman for the delayed start of the Alzheimer’s study. And while Mr Hoffman certainly appears to be eminently well qualified for his new role and duties, it struck me as rather odd that Dr Jay would interrupt the building momentum for the big Munich reveal with a precious Tuesday PR about a new numbers cruncher. And it's also not like there was an urgent reason to remove the seemingly competent interim CFO right now.

So, circling back to my hypothesis, shared by many board members, that everything now is really about Munich, I began to ponder how Mr Hoffman, and his sterling credentials, might fit into Munich. Well, to begin with, his 1st day on the payroll is May 15, when his boss will be at the poster presentation. So I wouldn't be shocked if he reports to work in Munich instead of Vancouver. But, if so, why bother bringing Mr Hoffman to Munich? Forgive me, but to find a plausible answer to that question, I have to back up quite a bit.

Reasonable speculation would suggest that CYDY management knew the salient details about the 5 mTNBC survivors and the CRC survivors by late 2024. If so, logic would dictate that CYDY provided that data, via NDAs, to GSK, MRK, GiILD, and any other suitable BP candidate that had previously considered partnering with CYDY in oncology.

Assuming the new data generated some interest, I know from my prior life that complex settlement negotiations can take several weeks or even a couple of months to either bear fruit or collapse. I suspect that by the time of the February 24 PR, concerning the mTNBC survivors, Dr Jay and the BOD probably knew whether a partnership deal was in the works or not. Certainly, the outcome had to have been known when CYDY issued the April 29 PR headlining Jay traveling to Munich over the fact that 5 mTNBC patients had survived.

Given that seeking a BP partner is mainly about obtaining a critically needed cash infusion ( and BP clout with regulatory agencies), I assumed that highlighting Jay's trip to Munich was likely a tell (bread crumb) that partnership negotiations had succeeded, and that he would announce, and perhaps even sign, a partnership agreement at ESMO. I also felt, and still believe, that the mTNBC and mCRC survivorship data together with sending key CYDY reps and KOLs a to oncology conferences in Munich, Barcelona, and Vienna within a 9 week span, very plausibly suggests that Conditional Marketing Authorization for Leronlimab from the EMA may be imminent.

I love the above picture of Munich, and think it has a reasonable chance of coming to fruition. But what if the partnership negotiations actually failed because the BP Goliaths ultimately never offered CYDY anything but miserly, take it or leave it partnerships terms that Jay and the BOD could never accept. That scenario is certainly also plausible. But, if so, how does Jay make lemonade in Munich out of those lemons?

Well, Conditional Marketing Authorization would be a big start. But even with the KOLs working the room with the European oncologists, prescriptions written for LL and revenues would still be several months away. And CYDY would need significant cash to underwrite the start up.

So, here's where I think about the oddity that CYDY recently scrubbed its HIV and other non oncology indications from its website (together with the disappearance of Dr Melissa Palmer). Could it be that, knowing partnership negotiations had failed, CYDY has sold most or all of its non oncology Leronlimab pipeline to Vivi or some other usual suspect? That would likely give CYDY the cash to go it alone, without another debilitating and dilutive cash raise, and mine all of LL's vast potential in oncology. ( I would fervently hope that Alzheimer’s would also be retained in such a scenario.) And bingo, Mr Robert Hoffman would be right there inn Munich to step right in to manage the finances of this exciting new CYDY. Makes sense to me.

I am obviously trampling on MGK's turf in concocting the above scenario, but it actually might be plausible, and I was tired of trying to choose who to blame for the delay in commencing the Alzheimer’s study.

Best wishes to all.