Pacific Channel releases updated internal analysis of LCT 10/09/2019, page-5

Its pretty much nonsense to complain about a lack of plans to "scale up production and commercialise NTcell" when it hasn't been proven to work and any regulatory approval is now literally years away. Likewise its simply not true that anyone, including those behind Pacific Channel, could conceivably articulate a plan for funding future trials at this stage.

LCT has engaged Dr Carolyn Sue and Dr Barry Snow to use their upcoming trip to see if they can find any interested parties for future trials. The hard fact is NTcell has had a huge set back as the result of the trial, and neither Pacific Channel nor the minority shareholders behind it can alter the facts. The only part of the commentary that has any real truth it that LCT hasn't communicated well with the shareholders. Unfortunately the NTcell trial design was flawed, and its proved very, very costly. Should someone be held accountable? Maybe, but its not clear that replacing Ken Taylor with some unknown director would change anything. Pacific Channel is agitating about deficiencies, but hasn't communicated clearly the qualifications of the proposed new directors. How do they compare with Ken Taylors credentials?

"Dr Taylor joins LCT following a prestigious international career in both academia and business. He completed a postdoctoral fellowship in Pharmacology and Experimental Therapeutics at the Johns Hopkins University School of Medicine in Maryland, USA, and subsequently held a joint appointment in neurosciences at Princeton University and the Squibb Institute of Medical Research in Princeton, New Jersey. He joined Roche Australia and was soon promoted to the role of Medical Director, Australia; before becoming Managing Director of Roche New Zealand. In 1990, he was appointed Managing Director of the Roche UK affiliate and then transferred to Syntex in Palo Alto, California to convert the corporate pharmaceutical company to the Roche Bioscience Research Center. Prior to joining LCT, Dr Taylor was CEO of Antipodean Pharmaceuticals where he managed the Phase I and II studies of its lead compound in Parkinson’s disease. He holds Honours and Doctorate degrees in pharmaceutical chemistry and pharmacology from the University of Otago School of Medicine and completed a business management program at IMD in Lausanne, Switzerland."

What is the experience of the proposed new directors in the planning and managing therapeutic trials in Australasia or for the FDA? The LCT BoD have considerable experience in doing so with both NTcell And Diabecell.

My concern is that the proposed new directors have neither the experience, the knowledge, the expertise, the contacts or the respect of colleagues in this area of investigation.

Having said that, I still think the blame for the botched trial does rest with the current BoD. But I have a lot of reservations about whether the proposed changes would improve the potential outcome or simply doom the company entirely.