sla topics of discussion

Just wanted to clarify a few things ...

Point 1 - Tomsk Site B construction time

as i previously stated - the best estimate would be formed by looking at how long they took to build their existing manufacturing plant.

So here is the time line:

June 07 - upgrade of existing sibex facility in tomsk (85% owned) announced.

March 08 - currenct sibex facility in tomsk opened.

so that took nine(9) months to upgrade an existing facility.


SITE B at TOMSK is larger and we'll be starting from scratch. Hence 12-18 months would be expected.

According to the 25th August 2008 announcement Mr Putin will give SLA the final green light to start contruction in October 08 (note approval has already been given by the Tomsk govt).

So that means Tomsk site B (500k courses per year) will be ready early to mid FY10 at the latest. By then Ropren would have had established itself in Russia and the increased supply could not come at a better time! The low initial supply could actually boost its popularity (the less you have, the more people want it!! human nature at its finest)



Point 2 - Menarini

i) I want to talk about this because I think its a key question on Weds as to how SLA plan to go forward in Russia

In April 08 Menarini approached SLA for pharmaceutical distribution in Russia and Eastern Europe(Menarini is one of the largest in Russia)

Under their proposal SLA would only see 45% of the final sales price of Ropren.

SLA rejected this proposal (see April 08 announcement) by signalling no commercial interest with menarini. However have retained Dr Victoria Gorbacheva (Head of business develpoment in Menarini) to lead the SLA team in Russia, and she has accepted.

SLA's strategy will see 70% of the price of Ropren hit our bottom line!!!

Point 3 - Ropren sales and pricing

Although I dont believe SLA have made Ropren sales up to 30 June 2008. I am not sure about July or August. Heard from a friend who contacted SLA management that from what they knew SLA mgt have not communicated any information regarding Ropren to the BPO board. So that comment was either based on BPOs thoughts based on announcements or simply a finger in the air thing. SLA mgt were quite surprised - which lead to the inclination that maybe the information was inaccurate. My thoughts anyway.

Anyhow in terms of sales and pricing I've given up on an estimated price. But all I can say is that whatever it is we'll be swimming in money this time next year. That much I am sure about. 60c will be a joke in a few months time... we are so close to take off - I can smell the jet fuel !!