First let me state for the record that I requested the meeting...

First let me state for the record that I requested the meeting with MR and invited others who might be interested to join me. My motivation for asking for the meeting was as follows: As a shareholder, I consider myself part owner of the business and consequently like to get to know the people who run it and hear directly from them regarding progress and challenges, market conditions etc.

My comments below are derived from my notes of the discussion. They are not a verbatim transcript and therefore I want to be clear that they should not be considered as coming directly from the CEO. If I have misunderstood or misinterpreted anything, that is my fault. For the avoidance of doubt, there was absolutely no new information provided that the market has not been informed of. For the benefit of the looney who claimed this was a ?secret insider trading cabal?, I?m sorry to disappoint you.

The meeting went for about 1 ? hours and apart from myself, 6 other shareholders attended. MR started off by walking us through the most recent presentation (as published) providing clarification and nuance, especially with regard to the scientific and regulatory processes. Following this we had an open Q & A session.

First off, lets dispel some of the wild rumours:
The company is committed to the Nasdaq listing. The SEC requested clarification some months back regarding the differential treatment under Aust v GAAP accounting regulations of certain transactions (e.g. the Springtree transaction). MR reiterated the position that whilst the SEC continues to deliberate, the best legal advice he has is to avoid public comment on the matter. He acknowledged that whilst it could come at any time, the fact that they are about to lodge the company?s annual financial statement with the SEC (as well as ASX obviously) may be a factor in the timing. He mentioned that the SEC was being particularly cautious lately with offshore company listings, due to recent problems especially with Chinese companies that listed recently.

Next: MR is not going anywhere. Fullstop, end of story!

Much discussion about DNDN. Bottom line, PRR has taken careful note of the recent problems with DNDN and sees most of it as self inflicted. Over promising and under delivering on revenue projections and basically poor management execution. MR says they have learned many lessons on what not to do from the experience. His view is that over the next 6 months DNDN will probably fix their marketing problem with doctors over the reimbursement issue and sales should improve, prompting a rerating by analysts and the market. Meanwhile, it is at the mercy of shorters.

Pilot commercial program in Dubai is proceeding fine, one final issue they are currently resolving is the ?chain of custody? of the vaccine from Aust to Dubai to satisfy the Customs Authority. Dubai will take approx 2 years to fully develop sales, but first sales expected towards the end of 2011. Since Aust (like Dubai) treats Cvac as a blood product not a drug, the potential for a similar programme based in Aus is likely to proceed well before FDA approval. As soon as they have sufficient interim data during the Phase III trial, this will be advanced.

At this stage Phase IIb is running to schedule and they should be making an announcement about commencing Phase III shortly.


One interesting comment MR made in relation to trial completion dates was to the effect that they are event driven, not date specific. In other words, data collection sort of depends upon the survival time of the trial patient. It?s a rather morbid point but if the vaccine extends trial patient life longer, it may take longer to collate the data and vice versa.


I am sure you all realise I cant put into a few paragraphs the entirety of a nearly 2 hour free flowing discussion, and that these are merely my key takeaway highlights.

Kbear1