analyst view

Below are extracts of yesterday Fat Prophets' news letter - which does bring up any new stuff. The only potentially interesting news is the confirmation that they keep talking to prospective partners.

" ... Having spoken to chairman Nathan Drona on the issue, he confirmed that management are currently in negotiations with various prospective partners. The merger simply allows Avexa to enhance their negotiating position by independently completing the testing process.

In our view, the extent of the dilution to ATC’s potential upside for Avexa shareholders is disappointing. But in reality, a capital raising in the current environment is an unrealistic option for Avexa. The bottom line is that Avexa has a highly promising product and little cash, while Progen has lots of cash and no product. In this environment where cash is king, Avexa were always going to struggle to gain the upper hand in negotiations. However, the deal will be justified if management can capitalise on Phase III testing success and bring ATC to commercialisation.

..."