Hi Fly,Probably the single biggest mistake Pete Smith could make...

Hi Fly,
Probably the single biggest mistake Pete Smith could make in the current situation would be to start the trials without locking in sufficient cash to complete the trials. This doesn't necessarily mean that ACL needs $20mill in the bank in order to start the trial, but it does mean that the company has certainty that cash will be available when needed. Occasionally, smaller biotech's do run out of cash during a phase III trial (stupidly hoping that cash will arrive half way through the trial), and the consequences for shareholders are always catastrophic.

Given lower receipts due to new generic competition, I think it will now take at least 12 months of profit share to pay back Dr Reddys. This means that fonda cash will not arrive early enough to contribute to the phase III trials ? unless ACL can negotiate with reddys to delay repayment for the period of time required to lock in phase III cash.

And, as mentioned in my original post, delaying the start of phase III by another 12+ months (so as to allow fonda cash to fund the trials) will severely undermine the value of HyACT patents.

I remain confident that ACL management will choose the best (or least worst?) funding option available to them under the present difficult circumstances.