I am not sure about you all, but I see yesterdays announcement as closure of that subject for a while, she has cost the company 10's of millions in MC and considerable corporate displeasure, so onto the next opportunity for me, a new start, and a new CEO.
Its been a fabulous week or two for Phosphagenics with 2 very good announcements, and one clearly very bullish announcement from Founder & CEO Harry Rosen celebrating the value of his scientists.
I think it worth noting that it was clear in the press communications that ‘Australian in house scientists’ had achieved what 3M and its staff could not. Ie the Scientists at Clayton in fact developed a patch that could deliver the actives where 3M could not.
This of course reminded me of another Australian success story and business model which it seems that Phosphagenics is now following as there are some clear parallels.
“Mesoblast pursues an innovative and flexible business model that seeks to commercialise technology with genuine therapeutic benefits. Where some biotechnology companies simply develop their technology to the point where it can be licensed to a pharmaceutical company, drawing revenue from royalties alone, Mesoblast has deliberately pursued a strategy where it has focused on developing a platform technology with multiple applications, allowing it to license or manufacture and market the end product, depending on which approach is optimal.,
Mesoblast’s model is based on raising enough funds to pursue early- and mid-stage trials to demonstrate the efficacy of its platform technology in a variety of indications. For some of the larger indications, Mesoblast can then engage in strategic alliances, such as that with Cephalon. This alliance will see Cephalon help drive specific products in Mesoblast’s portfolio through the costly late-stage clinical trials and regulatory approval processes, as well as partnering to leverage Cephalon’s marketing and distribution strengths.
For other products, Mesoblast can use its own resources, including revenue from its partnerships with companies like Cephalon, to take other products all the way through to gaining regulatory approval, allowing the company to manufacture and market the product itself or through a partner.
This innovative business model is not limited to licensing deals or committed to driving a single product through to regulatory approval, but is adaptive to whichever approach is most advantageous depending on the product, the market and the partners on offer.
One of the primary points of difference that separates Mesoblast from other biotechnology companies pursuing regenerative medicine technology is its use of off-the-shelf stem cells, which can be derived from a single universal donor and applied to multiple recipients. This makes Mesoblast’s technology and business model more akin to a traditional pharmaceutical model, with corresponding high-margin pharmaceutical-based sales model, rather than a more complex and less profitable biological model.
In terms of the applications that have been focused on to date, most already receive reimbursement from health care systems either in Australia or overseas. This reduces the end cost of the product for the consumer, and also appeals to governments if the technology yields improved results for a lower overall cost for that disease or condition.
Mesoblast has enjoyed very stable management, with the founder, Professor Silviu Itescu, remaining active as Chief Executive from foundation to today.”
With the exception of this line "Mesoblast has enjoyed very stable management" it seems the new CEO needs only to follow founder Harry Rosens new and enthusiastic guidance and you all should see the $1 you are looking for IMHO.
Why not move the subject and the company on from the mid year rubbish. A refreshed Board and new CEO should be able to achieve great things with this outstanding Australian platform technology.
Cheers
BSW
POH Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
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