Ann: Ceasing to be a substantial holder from Arix Bioscience, page-43

Not sure if this has been posted but does explain why Arix bio. sold their whole holding.

As per their September results preso (refer page 18-19 of attached) they pre planned to reduce from a 16 company portfolio to 11 and as a result they had to sell out of 5 companies and pharmaxis was indeed one preempted for the chopping block. The only way to do so for a small co. Like pxs is to do it on a high liquidity day like the Fed announcement.

It's fair to worry and good to understand the logic behind the selling of substantial holders, especially in this case due to it being on good news and being 100% of their holdings. But you'll find that their holding in pxs would be immaterial for them due to it being less that 2% of the total fum so the volume would probably be more important than the exit price.

That all said I believe anyone purchasing shares 10c or below will be cheering Arix had to sell off as there'd be no way you'd be getting such a low entry otherwise. An enterprise value of $4mill for a reasonably mature pharma with the talent, pipeline and cashflow of pxs seems ridiculously cheap and doesn't come around too often from my experience.

Anyway just my findings and opinion.. good luck!