good points - in general cash may be seen to be king but in this instance what appears to have occurred is that cash being preserved by "diverting it" from SH's by the non-payment of dividends. IMO this will not be forgotten in the short-medium term.
royalties from Axirom appear to be decreasing and once the generics kick in IMO they will fall even further. Dilemna then is how much do they push pipeline at the risk of depleting cashflow - go for CR and then what are the chances of that if market generalises that monies squandered and poor management in place. I guess it will be at that stage that they may also regret the performance bonuses paid for somewhat non-performing pipeline and Axirom royalties that were formalised by an ex officeholder (who basically put them in the strong position they were/are in).
what are you buying into here other than cash at bank which may well deplete if Axirom revenues decline - and everyone has their own opinion. IMO:
1) company whose pipeline will take a few years yet to get anywhere near commercialisation from comments in previous ANN's;
2) company involved in litigation (yes I know its the norm for companies) to overturn patents so IMO they can get their product out there quicker (my feeling is they see that the costs are going to be high for the pipeline project and therefore this is a way of expediting the product to market). is this an indication of the direction may take for future R&D as well - could add to the expense even though taking the cheaper legal route here;
3) by the looks of it falling royalties expected to decrease even further when generics kick in. What is happening with testosterone court actions?;
4) no certainty of dividends or capital growth in the next few years - so why bother investing here - may be best to look for better investment plays (but obviously depends on an investors risk profile);
5) some say lack of transparency is an issue and if that is the case then need a change at the top to get things moving again - still awaiting response regarding Hexima JV!!!;
so focus on cash is one area to look at but there are obviously other issues that the market looks at as well. May be funded ATM but anyones guess as to how long it may last - but in saying that cash can be preserved by making budget cuts as and when required - as well as cutting bonuses.
current SP IMO good indication as to where a once "sprightly" $4.30 per share company has got to due to a number of factors and the amount of cash on hand has not helped SP stability - why?..
so yes the "game lifting" you are referring to has also IMO been an issue for some time and the sliding SP could be a testament to that as well.
ACR Price at posting:
22.5¢ Sentiment: None Disclosure: Held
