CU6 - ASX Charts, page-1953

BP - Big Phama. Shorthand for a big US or European pharmaceutical company to buy out a "minnow" like Clarity.

It's the main argument for continuing to hold Clarity at the moment and would obviate the need for raising capital.

Its also the main reason I kept most of my holding all the way down from $8.70 - couldn't get the Fusion deal out of my head.

The killer for me about Clarity is the absolute refusal to keep shareholders informed about the CLARIFY trial. All analyst commentary suggested that this Phase III trial would be completed and that Clarity would be able to commercialise at least one diagnostic product in 2025. There would have been so many benefits to this including:

- massive credibility (so few Aussie biotechs actually take a product from lab to market)
- reduced cap raise requirements
- pressure on BP ("buy now, or Clarity may be able to develop itself into a multi-product, highly profitable company")

Instead, we heard nothing and Clarity management were ok with shareholders lapping up the analyst views. Of course, hedge funds and other large investors have their own network of hospital contacts and would in all likelihood have known that the trial was only crawling along as well as the associated funding implications - so they sold all the way down from $8.70 to about $3.30.

When Clarity finally "came clean" (if you can call it that given that it was never explicitly announced and instead buried deep in its half-yearly report) about a proposed plan to apply to the FDA for both the CLARIFY and AMPLIFY indications at the same time, us in-the-dark shareholders found out that CLARIFY is unlikely to be completed before AMPLIFY and AMPLIFY hasn't even started. As this dawned on shareholders - as well as the now hugely-diminished trust in the company - we've seen $3.30 down to $2.10.

I've seen hospital-chasing law firms launch class actions against Boards for (IMO) less egregious non-disclosures than this. Just another fun distraction to throw into the mix ...