As always with ANP the worst case scenario unfolds. Clearly...

As always with ANP the worst case scenario unfolds. Clearly didn't get orphan drug status but doesn't say why or what the feedback was. The announcement was worded in way to cause confusion about the potential of 1103 which is now competing with SB's pipeline.

What an unbelievable waste of a year. Is it the end of the road for 1103? ANP cannot fund anything on its own. Will a partner touch it without orphan drug status? Will the higher dose study be compelling to attract another partner? The market valued the deal at nothing but it did not expect nothing so another sell-off is likely. Given SB's large upfront payment for COR-005 it is not surprising that one was kept if they had to choose. Maybe ANP can find another partner who isn't as obviously stretched and cash strapped as SB.

SB's stock is up despite this investment write-off. Is there a termination fee? Their upfront fee is forfeited. I suppose none of this has anything to do with Diamond who now has a track record of almost total failure at every level. He has a day to spin this outcome after he declared on 2015 that the deal was a great day for Australian biotech industry. No doubt he will blame the sector as a whole.

I expect SB will want to dump their entire holding at some point. They have 15 mil shares or 8.5%. Escrow period is two years but would have to confirm if that stands if the agreement is terminated.

Another sickening outcome after the Teva debacle years ago yet almost entirely predictable given the way the stock was halted and the complete silence prior.

SB - partner or predator? Neither as it turns out. They are now a competitor and ironically a major shareholder (for now).