Ann: Phosphagenics - February 2016 Newsletter, page-39

Some points from this morning’s Conference Call.

• The projected cash runway was questioned. Murdoch asserts that there is sufficient cash for 2 years, based on current income levels and cost reductions achieved. Nonetheless, he said he also had “expectation” of deals in the medium term.
• Murdoch was insistent that the TPM/oxycodone patch trial results were well received by several parties and that more than one party had expressed willingness to partner the topical patch’s next trial. Although he said that “further development and licensing discussions” were continuing, Murdoch could provide no guidance on timeframes nor guarantees.
• It was made clear that POH’s contract with Mylan remains intact. Arbitration set down for later this year concerns compensation for alleged breaches of that contract.
• TPM diclo gel is said not to have “fallen off the radar”. The company is still in discussion with respect to both increasing volume of sales in India and selling in other countries.
• Murdoch appeared to confirm that the sale of BioElixia had been hampered by the ProPhase arbitration. He commented that the company would “re-engage” on sale discussions after the arbitration decision was delivered.
• Don’t expect cash inflow via the IAH/Brinicombe deal any time soon. Advice is that European approvals re TPM are needed and would take up to 2 years to achieve.
• Regarding directors buying shares – Murdoch said possible windows of opportunity for directors to trade is discussed at each Board meeting. He said that legal opinion has been that there has been no available window of opportunity since the last AGM.