require your clarification asap mr drona

I have sent the below email to [email protected] & now awaiting reply. Will post some facts soon as well & will keep you posted if I hear any reply from our hardworking chairman.

Dear Mr Drona

I understand that you have been actively calling some shareholders in reply to their email queries to this office's email address.

As a very upset shareholder I hope you can also respond to me ASAP for the below questions:

1. Were you the source of this article?

http://www.pharmaceuticalonline.com/article.mvc/Avexa-Halts-HIV-Drug-Trials-The-Future-0001

I expect that your answer should be YES (please see bottom of article).

2. When did you first have the knowledge or realization about the above story (all unfavorable market landscape for ATC)?

The Article says that "The launch of the first once-daily cross-class FDC Atripla (tenofovir/emtricitabine/efavirenz) in 2006 was a major landmark, and has significantly raised the bar for HIV pipeline drugs with regards to efficacy and convenience"

When did you have this knowledge and why did you keep us in the dark?

NOW also ASSUMING that your article was TRUE:

3. How much is the current market share for 3TC resistant patients of the total HIV market? (please provide reference if possible).

4. Is this market (3TC resistant patients) not Avexa�s target market (second line therapy) as it has been represented by the company to the public for many times? Why the comparison to first line therapy? Have you been misleading public?

5.Have you ever considered calling for an EGM (to hear shareholders opinion & facilitate voting if necessary) before you terminate ATC? If not, why?

6. As a common man with a common sense, I see there are too many strong reasons for calling EGM before terminating ATC:

a. ATC is the one and only valuable asset to date in Avexa (single product company). In our mind when we buy AVX shares we buy only ATC.

b. You must be aware that killing our main product will kill the whole company, and termination of the program is not a small decision as you have pointed out. So why did it take you only ONE DAY to make this decision? (6TH May you received notice & 7th May trading halt you have started drafting ATC termination letter to shareholders??)

c. We still have $26m in cash

d. You just raised an oversubscribed SPP (with cleansing) less than 6 months ago which proves that shareholders are still enthusiastic & great support is still behind ATC.

e. As a capable director you would have understood that virtually all shareholders value will be destroyed if you terminate ATC. Why the rush? Or are you not a capable director?

f. You do not have a single share/interest in the company (I do not believe that you have any empathy or 'know how shareholders feel' to the current loss).

7. Can you please have Julian Chick & Jonathan Coates to come forward & submit an ASX announcement or write a final 'farewell note' to public and us shareholders?
They need to be very accountable on this issue as opposed to resigning quietly as shareholders have bought their story over the years. I have spoken to many shareholders and they also have higher regard to what Chick/Coates have to say as they have been with the company much longer than you and they were part of the team who appointed you as a chairman. Their words on this issue would carry a lot more weight to support your decision to terminate ATC.

If you cannot publish this, can you explain why?


8. Some people have suggested that you would stand to gain for the realization of smaller M&A deals (for example receiving M&A commission) than you would was there a licensing agreement with major pharma.

Can you disclose or announce publicly that you do not have any conflict of interest in these smaller deals?

Also that you would welcome any investigation in relation to you or your related entities' income following any of these deals?

9. I prefer you reply me in writing however I also gather that you do not like replying back by email so my phone number is +61XXXXXX (daytime) and +61 430 XXXXX (after hours).

I am keeping many other shareholders informed on the answers to these questions so your prompt response might help save you some breath in the coming EGM.

Kind regards