Ann: Acrux presents at BioTrinity-ACR.AX, page-10

Thanks.

I think the milestone payment is the most immediate issue which is effecting the companies (and holders) future.

Usually companies like Lilly will give a portfolio of products to an executive to manage and they will be responsible for maximising profit from their portfolio. These guys live or die by their sales numbers and usually their personal bonus structure will have a strong linkage to how well they do. For this reason it is inconceivable that Lilly are not factoring the bonus issue into their marketing choices.

To me it is critical that we increase market share with Axiron, as it will be a losing battle once patents expire, It makes sense to have as many consumers loving our product now, while we have patent protection, so that as they begin to defect to cheaper competition, we will keep a reasonable market share for longer.

Surely if we open up discussions and cannot reach a mutually beneficial position then the previous agreement will just remain in force. However, it seems to me that a win/win exists in re-looking at it - a mutually beneficial position should be able to be reached in which both companies increase revenue. At the moment, a deal with constrains Lilly from selling must mean $ going into the pockets of competitors because of a lack of sales efforts.

It seems to me the case is compelling. So why is this not being done? Or maybe its a "we tried/failed/denied we were ever trying" effort