Ann: 2013 Annual Report to Shareholders , page-10

I also took note of the line in the Annual Report identified by Jamwolf. It seems to me that sound and diligent steps have been taken in light of set backs in regulatory approvals. The string of bad news has been slammed by people on this site, however, it would appear that the current strategy and approach is sound.

The ultimate value of this share in the near term rests on a partnering announcement + evidence of a further uptake of bronchotil sales in markets in which it already has approval. The next quarterly sales report will provide further indication on whether management's focus on user behaviour impacting sales along with their continued marketing efforts.

If sales revenue increases, coupled with known government grants + interest income(although reducing due to balance and lower inetrest rates), with the reduced operating costs of $12M, the positibility of becoming cash positive in the near term seems quite real.

It should also be noted that the $18m research costs for Bronchotil in 2012/13 were a significant drain on the cash position - however, we know that this cost will reduce materially as any further research will be undertaken with a partner - the annoucement of which will hopefully come by the end of the year.

So in my view, this stock has had a run of bad news - but they are taking prudent steps to address it with a revised business plan that faces the reality of an approval process that didnt go well or to plan.

Of course if sales dont pick up for Bronchotil in existing markets over the next 12 months, then it may be indicative of a much bigger problem than this restructuring and re-planning can adress - it would appear to be a problem with the saleability of the product to the end user doctors/patients. If this is the case, then management would need to think very clearly on whether they are flogging a dead horse.