is today the day?, page-49

Since they stated that pharmanet would hit the market prior to the AGM, they obviously have hit problems to be timely.


That leaves several speculations to be possible:

1,
they cant find a distributor.
This is not very logical as they already announced that it will be nation wide through pharmacies in the annual report which was many months after their TGA approval for the product.
At the time of the annual report they must have already had a pretty clear idea to anticipate a date for the launch which makes a distributor in the pipeline a logical consequence.

2,
they have a distributor already but it takes time to smoothen out the tricky parts, namely the international follow up contracts for distribution ( I was always convinced that the distribution contract will have international sales incorporated as it was stated in the annual report that this is their goal ).
Out of my own experience I can state that those contracts are very complicated and time consuming to figure out.
The distributor wants enough cash flow in the company to have a guarantee that the company will be liquid during distribution cycle and doesnt dry up whilst manufacturing, ensure product availablity.
The patent company wants the highest possible return out fo every sold product.

This has to always go back to the lawyers to check the wording, check for pipeline issues between manufacturer and distributor; check for exclusivity; check obligations of distributor, namely putting his best effort into marketing our product; check warranty and service claims, who is responsible for complaints, how will the distributor be compensated for services in those instances; check flexibility of price discount offered to distributor; check credit worthiness of distributor to allow for advance payments per shipment and finally check for termination clauses in case that the relationship is not satisfactory for either partner.


Large parcel buys in the last trading sessions indicate that the news are around the corner. PNO always has been a leaky boat.

best to all holders and to a hopefully interesting week ahead !