My novice understanding of this situation is that the reason...

My novice understanding of this situation is that the reason TEVA hasn't signed off on the Phase 3 congenital heart disease trial this year is most probably because TEVA has been conducting a comprehensive review of its entire suite of R&D activities, with an announcement of the way forward to be made in early December.

I gleaned this from reading some commentary from TEVA analysts in the US.

The thing that would sit somewhat uneasy with me is that the original endorsement of MSB's business model did not have its origins from within TEVA itself, but from the highly favourable deal MSB did with CEPHALON back in 2010 (I think it was).

So the association today between TEVA (who subsequently acquired CEPHALON) and MSB is therefore somewhat of an incidental one, as opposed to one of intentional design on the part of both TEVA and MSB.

My question is this: if TEVA articulate in December that mesenchymal stem cell trials is not their thing, how far would the MSB share price fall?

Something doesn't feel right to me about this corporate relationship which is critical to MSB's ability to fund its ambitions.

I recall reading some commentary last year quoting the company in relation to submitting Phase 3 trial applications to the FDA by the end of 2011.

Twelve months later, and this intention is still largely just that, from what I can tell.

To me, there is a mismatch between the "blue sky" and the progress towards that blue sky.

So apologies to MSB shareholders for my cynicism but as I prefaced this post, as a mere novice observer, I am aware of my limitations of all things biotech.

But I like to think I know a thing or two about counterparty risk, and I suspect that 90% of MSB's poor share price performance in 2012 can be attributed to exactly that factor.