re: can anyone help/announcement In addition, this was sent by the company to those on its mailing list.
In response to a recent drop in our share price, we advise that there has been no change in the company's outlook and that these movements are not based on any material change to the company's position. The share price has been impacted by two separate Top 20 individual shareholders who have been selling down following the announcement of the Control Delivery Systems (CDS) acquisition for personal reasons. This created an "overhang" in the share price, whilst new buyers were waiting to see the CDS acquisition be completed in December. Recently, our shareholders overwhelmingly approved the acquisition.
Post the CDS acquisition; the company will have approx. US$26m in cash reserves so the company does not need to raise capital. In addition, next year we will be reporting revenues from Bausch & Lomb royalty payments for Retisert™, the world's only FDA approved drug for the treatment of Uveitis, a leading cause of blindness in the world, now with full Medicare cover.
There are also ongoing business discussions with pharma, device and biotech companies that we expect will result in new formal agreements in addition to our current evaluation agreement with an undisclosed big pharma. We would like to give you a definite time on these agreements but that is not possible. However, the CDS acquisition will boost our business development resources to help us convert these opportunities more quickly.
We have also had excellent recent announcements - revenues from Brachysil™ and the CDS acquisition - which were recognised as very positive by analysts/presenters at the AusBiotech Conference in Perth. We can expect additional published independent research in the US and Australia. We also received a "Small Times" award in the 'Company of the Year' category which is sought after in the Nanotech space.
The stock is now more attractive to a greater range of institutional investors given our liquidity, market capitalisation and revenues. The market has also not yet properly factored the value of CDS into the greater company. The true value of the CDS acquisition will become realised as analysts release reports and we conduct additional road shows. We believe attention to the acquisition was not gained as the two aforementioned shareholders continually sold into the volume generated by our positive announcements. This 'overhang' in the share price is almost completely cleared. Management will be in Frankfurt and New York next week to meet with potential institutional investors.
We will update the market this week on developments in our diagnostics subsidiary, AION Diagnostics and on our Food Technology spin out. We will also release a new open briefing next week to provide a further update on CDS, Beijing Med-Pharm and other news.
In addition, Bioshares has today placed a speculative class A buy recommendation on pSivida. An extract of the initial report is attached.
We greatly appreciate the support and long term visions of our shareholder group and welcome enquiries at any time.
Kind regards,
Brian Leedman
Investor Relations
PSD
psivida limited
