I have included an article I found regarding the recently signed...

I have included an article I found regarding the recently signed deal with Pfizer. The second half of the article has some good info on Alimera Sciences and also about Eli Lilly's eye drug that recently failed which makes psivida's Medidur technology even more valuable.

Like the rest of psivida's stock holders, I would kill for a management update about exactly how the pfizer deal affects psivida's partnership with Alimera Sciences going forward and also how it affects the potential Nordic Biotech transaction. The Nordic aspect has not been mentioned by the board since the deal.

I believe that selling the Aion diagnostics business is a good move as psivida is released from committing any further developing funding whilst retaining royalty rights from future products. The new US owners will have much deeper pockets and focus anyway and will bring revenue earning products to market much quicker than psivida could have.

I do not really know why people are focusing so much on the 'lack of detail' on milestone payments. It is quite common in licencing agreements (remember it is a collaboration) to keep this aspect confidential from competitors. And the 60 day clause, big deal. Any large pharma can terminate agreements with partners if the technology development hits a speed bump or fails expectations regardless of whether or not it is detailed in the agreement. What do we expect? That Pfizer will cough up $200 million to psivida if the technology hits major hurdles?!

Investors should be focusing on the significant positives of this deal with pfizer. That is the vailidation of their technology and company adding credentials of signing a significant licencing agreement will the monster pharma Pfizer. In my eyes this also validates the boards foresight to identify and purchase Control Delivery Systems who developed the eye disease products. There is also potential of another licencing deal with pfizer again in the short term for another opthomalgic indication. The fact that the company is rationalising it's structure by selling Aion, and clearing debt of convertible note is a significant development. I would anticipate more non core trade sales in the near future including psivida's wholly owned food, orthopedic and wound healing technologies and businesses. Again, this will put money in the kitty for core development, take away management distraction of developing subsiduries from the ground up, and benefit from the flipside of royalty income from products developed by larger players. Psivida just might even sell the oncology franchise which has a carrying asset value of approx $40 million.

I am a liitle in the red from jumping into psivida a bit early a number of months ago, but I am confident enough to hold for major developments and upward share price movement throughout 2007. Before you read to much into the short term share price and close the book, don't forget that psivida has numerous other evaluations with major companies that have potential significant licencing and collaboration opportunities this year and next.

Such as..... -Multiple evaluation agreements signed with at least two other top 5 global pharma companies for Psivida's Biosilicon and drug delivery technology in the fields of opthamology and oncology. -Evaluation agreement with a large global medical device company to evaluate cardiovascular delivery of drugs usings Psivida's technology -A recently announced collaboration with a global electronics company to evaluate the Biosilicon technolgy for the development of transdermal drug delivery systems. -An agreement with ITOCHU Corporation (one of the world's largest comapnies) to develop technologies for the Japan and Asian market.

Good luck to all. After all that, below is the article that I mentioned earler.

Pfizer spies pSivida's injectable eye treatment by Anna Lewcook 04/04/2007 - Pfizer has homed in pSivida's controlled release drug delivery technology, signing a research and licensing deal worth $165m (€123.5m) and focusing keenly on the company's Medidur technology for new ophthalmic applications. The Medidur product, currently in Phase III trials, is a tiny injectable device 3mm long and 0.37mm in diameter. The insert is being studied as a way of delivering fluocinolone acetonide (a corticosteroid) to treat diabetic macular edema (DME), and has been designed to last 18 to 36 months in the eye, releasing controlled amount of drug into the eye daily. According to current licensees Alimera Sciences, the Medidur product releases the smallest amount of drug currently available for treating DME, with 0.2 or 0.5 micrograms of drug delivered to the retina each day. Under the terms of the Pfizer/pSivida agreement, pSivida will receive up to $155m in development and related milestones, and the two companies will work together to develop ophthalmic products based on the company's sustained drug release technology. Pfizer will fund the joint research programme. Pfizer will have an exclusive license to market all products developed as part of the research partnership in ophthalmic applications, and while paying pSivida a royalty on net sales the company can also terminate the agreement on 60 days notice without cause. pSivida also has another proprietary drug delivery technology, BioSilicon, based on nanostructured porous silicon which is currently being evaluated by five undisclosed global pharma companies for the controlled release of compounds from injectable formulations. The company is currently exploring ways of applying the BioSilicon technology, currently in Phase I trials, to drug delivery treatments to the back of the eye. In January last year the, pSivida's licensing partner Alimera announced several new agreements concerning Medidur - involving "three of the five largest global pharmaceutical companies" - to evaluate the technology to release developmental compounds for the treatment of other eye diseases. pSivida has been working with Alimera Sciences, a pharmaceutical firm specialising in the ophthalmic industry, to develop and market Medidur for DME since 2005. There are currently no treatments available for DME that have US Food and Drug Administration (FDA) approval, and with the Medidur product having been granted fast-track status by the FDA the companies could be backing a winner that will give them an edge in an underserved market. At present, the only approved option for patients suffering from DME involves laser photocoagulation therapy, which can leave irreversible blind spots. So for the half a million treatable cases of DME in the US alone, an alternative therapy would seem to have fairly open market for the time being. Another major pharma, Eli Lilly, was only last month forced to hold back plans for its drug Arxxant (ruboxistaurin), an oral therapy intended to treat blindness caused by diabetes. Following FDA claims that the drug, which the company had been working on for ten years, was not up to scratch, Lilly withdrew its approval application for the product in the EU. With some analysts forecasting that Arxxant would be a blockbuster with sales of around $1.1bn by 2010, the news would have hit the company hard - but could be music to the ears of other pharmas developing treatments for diabetes-related eye complications. Pfizer already has a few ophthalmic products on the market, Xalatan (latanoprost) for open-angle glaucoma or ocular hypertension, and Macugen (pegaptanib sodium) for age-related macular degeneration (AMD). The company received approval for Macugen in the EU in January 2006, and is currently in negotiations to return the US rights to the product to its alliance partner OSI Pharmaceuticals in exchange for a royalty-free license to market Macugen outside the US. In addition to Xalatan the company also has Xalacom, the only fixed combination prostaglandin (Xalatan) and beta blocker, which is primarily available in European markets also for glaucoma and ocular hypertension. Combined, Xalatan and Xalacom generated almost $1.5bn for the company over 2006.