As disappointing as it is that HER-Vaxx was a duster, that's...

As disappointing as it is that HER-Vaxx was a duster, that's actually the acceptable risk investors take when investing in biotech. Its bloody difficult to get a new cancer treatment right through to the bedside - they can fail (or at least prove noncommercial) at any stage of the clinical trial journey.

What is unacceptable is the failure of management. The initial HER-Vaxx trial was stopped early, apparently on recommendation by the IDMC, and apparently due to "ethical reasons". That was a massive mistake. Leslie had two choices:

1. Be open about the fact that the trial was stopped for commercial reasons (ie it was taking too long, and the interim results were not strong enough for anyone to take it through to a registrational trial); or

2. Realise that 17 patients treated with the drug was never going to be compelling enough, and continue with the trial in an effort to get statistically stronger results.

She did neither. She thought the interim results were strong enough for BP and that they would licence HER-Vaxx based on those results. She was wrong. It is the single most important part of her role and why she was recruited from BP.

Instead, she and Paul continued to peddle the line that HER-Vaxx was not dead while they were hearing that HER-Vaxx was not attractive enough for BP, decided to completely change the company's strategy without shareholder notification let alone approval, and stop further investment in HER-Vaxx. To this day they haven't had the decency to formally announce this.

Just like the regularly peddled the line of capital adequacy in the lead up to multiple capital raises. Straight out misrepresentations.

Shareholders are now left with a CEO - who was recruited to get a Phase II drug acquired by BP - running a manufacturing facility, and a Chairman - who "specialised" in funding biotechs through Phase II and then licenced to BP - funding Phase I trials and planning to fund (gawd help us) and run a registrational trial.

The usual / acceptable biotech risks apply to CF33 but IMU management add a new layer ....