Ann: Positive DEP Cabazitaxel Phase 2 Results in Multiple Cancer, page-64

This announcement has demonstrated once again that holding this stock is a complete gamble.

The CEO commented that the trial results demonstrate therapeutic value. They do.

The CEO also commented that the trial results demonstrate commercial value. I strongly disagree. I think that only such things as marketing results, sales results, financial results and signed deals can demonstrate commercial value. The trial results might suggest potential commercial value, but in my opinion trial results on their own can never demonstrate actual commercial value. And the statement from the CEO does not demonstrate commercial value just because she says so. And banging on about all the billions of dollars of potential drug sales does not demonstrate actual commercial value. In my opinion, there is zero evidence of any actual commercial value, as opposed to potential commercial value, in this announcement.

Unless some evidence of actual commercial value is produced to clarify and support the CEO's statement, then in my opinion the CEO's statement about demonstrating commercial value is a heap of proverbial.

It is the job of SPL's highly-paid senior management to convert the potential of trial results into actual commercial value. Unfortunately, nomatter how much of shareholders' money that they pay to themselves, and nomatter how many years that they get paid, successful commercial outcomes appear to be elusive. SPL needs to address its failure to become profitable and also its apparent lack of a realistic pathway to profitability. Years ago, these two strategic issues were less significant, but in my opinion they have gradually grown in importance to have now become by far the most important strategic issues facing SPL today.

Unfortunately, I can see no evidence that either of these strategic issues is even recognised by SPL. This doesn't mean that the situation is beyond hope, because one or other of the current trials could yet turn the tables.

All that this shows is more evidence for why I think that holding this stock is a complete gamble.