re: anyone went to avx-pgl show?, page-2

re: anyone went to avx-pgl show? Hi

I attended the Sydney show today. Here is a rundown, by the way, you can get the investor presentation from the web.

Mostly presented by AVX Chairman Nathan Drona - who will be chairman of combined entity. AVX CEO will also be the combined CEO.

Things that stood out from the talk.
i) Main drug is ATC and in Ph III. He assures us that all HIV trials in the world that reach ph III have been successfully approved. i.e. HIV ph III drugs have 100% success rate based on pass history. Then in question time, a lady brought up PI88 and its promises. Drona reluctantly admit nothing is certain.

ii)Drona said there is only a handful of HIV drugs in Ph I,II,III trials (correct me if I'm wrong). Contrary to news I read elsewhere which suggest there are so many HIV drugs in development out there.

iii) Big part of talk is focussed on how excellent ATC is.

iv) Many references to creating "shareholder value". IMO this is pretty hollow.

v) Drona almost guaranteed that AVX is in serious discussion with Big Pharma but does not reveal details. Questions were asked why AVX don't partner with other pharma and get some milestone payments. Drona responded that they don't want to partner at a low price. They are looking for a very big price for the drug before willing to partner.

vi) Drona at most times tries very hard to dictate question time procedure.

vii) I asked about the cost of the trials going forward. Drona claims the merger with the $60m can take them all the way through Calendar Q4 2010.

My other observations:
i) AVX CEO only talked briefly about the scientific aspect behind the ATC drug.
ii) PGL CEO was like a sitting duck. Considering PGL is supposed to be the acquirer, PGL CEO's silence is intriguing. Seems like AVX, the target, is the aggresive one here.

My views: PGL is keen to show shareholders it can do something with its cash, even like selling the company buy exchanging cash. AVX thinks its ATC is the best thing since sliced bread.

One thing to remember for investors: Best technology does not equal success: Australian examples are pitiful, including CCE, VCR, PGL, PSD, etc.....