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For Bridges it's all in the timing
Scott Rochfort
September 12, 2011

The serial biotech board director Mel Bridges has raised a few eyebrows over the timing of his recent purchase of shares in Alchemia, a company he chairs.

Bridges on Thursday disclosed he had snapped up 87,000 Alchemia shares for 34.5? each. This followed a more than 50 per cent slide in Alchemia's share price since the start of August, fuelled by concerns the company could struggle to fund the Phase III trial of its HA-Irinotecan coloreactal cancer treatment.

Only two weeks ago, Alchemia's chief executive, Pete Smith, noted the ''working capital cap'' between the $5.6 million of cash the company had on its balance sheet and the $20 million cost of the trial.

''This is something that's clearly troubling the market at the moment,'' he conceded on August 26.

Smith, in the same interview, said Alchemia was looking at ''different financing opportunities'' including a share issue, taking on debt that could be repaid by future equity raising, the securitisation of revenue of one of its other treatments or a convertible note issue.

Smith also raised the more palatable idea of trying to sell the European rights of its HA-Irinotecan treatment. ''We could consider selling the European rights or regional rights for a sum of money that enables us to start the trial and that is actually something that we are looking at doing,'' he said.

Fast forward to Friday, two days after Bridges's share purchase. Shares in the company jumped 14.9 per cent to 42.5? after an encouraging investor briefing.

Smith said the company was close to finalising plans to fund the Phase III trial and believed the preferred strategy was achievable.

''The top of our mind is limiting that dilution,'' he said.

''We know we have to give clarity to the market about the funding. I believe we will able to do that in the not too distant future.''

Read more: http://www.smh.com.au/business/for-bridges-its-all-in-the-timing-20110911-1k477.html#ixzz1XgzQa2tp