The AGM was very good. I spoke to all of the management and scientist( Carol Worth) before and after the meeting.
The presentation was succinct and very informative.
SC was the presenter of the PowerPoint presentation, with plenty of input from SC and NW as required.
They really have had a busy 2016 and have been working very hard. I think we must remember that this is a very small company with minimal staff and not a lot of spare cash.
-The scientists believe the new technology is groundbreaking, and are very proud of their work. And so they should be!! SC even suggested that the new tech could be enough on its own to form a separate company.
So that was a pivotal point during the meeting for me atleast. It will hopefully be patented once the application goes through.
Some bullet points in no particular order:
- it seems we are very close to one or two new deals, which seem regional and are will bring in more up fronts
to add to the bank balance. Atleast one deal could be pre - Dec31 or soon after. They are in the hands of lawyers, with a bit of back and forth. It was noted that the negotiations are long and complex, and that no companies want to pay upfronts, and would prefer only a royalty stream, so they have no liabilities, etc, but NW is pushing for better deals all the time, including upfront payments.
- the ArtiMist deal was widely discussed by the attendees and very detailed. The potential trade sale was mentioned and certainly could be in multiples of $millions. ( an estimated $10 mill has been outlayed by the company over the years). So multiples of that might be the outcome? But before we all get too excited the deal is unlikely to happen until well into 2017, due to the fact that TGA approval is being applied for shortly and will take a max of 290 days to be approved. This approval was one criteria for the WHO. There are apparently upto 3 companies vying for the purchase ( trade sale) of ArtiMist, so there are options. One is a Swiss related major pharma, who I believe to be Novartis. They will not require WHO approval , and can market and distribute within Africa directly.
- SUD-003 is another big one. The new formula with menthol will be tested on rabbits in the NY. Carol Worth noted that they still refining the appropriate taste enhancer, which could be peppermint flavoured?
The company is definitely in talks with Pfizer ( preferred pharma), but not exclusively. The results of the new tests in Melbourne will be sent to Pfizer and then we shall see if they want to do a deal. My prediction is they will?! Pfizer may be interested in the entire new technology as well!?
-the money from the first deal will be banked within 30 days of the announcement, but registration within China could take upto 3 years, and therefore a royalty stream will not occur until that time.
All in all I believe the small SUDA team are doing a good job and also that it's a very complex and difficult, which normally would require a much larger team. They may be doing 6-7 jobs and not just the one, for example.
We're close to money deals and along the path of trade selling ArtiMist ( substantial $$) later in 2017, and could possibly have major pharma ( Pfizer et al) looking seriously at atleast the SUD003 and maybe the remaining catalogue of SUDA products. other major pharma are looking as well.
I hope this ramble is helpful to some HC people. I believe it is going to be a much better 2017 for longs and new shareholders. But who knows how the SP will respond?! I still believe the only SP substantial mover will be money in the bank. The more the merrier.
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