the australian - starpharma, page-8

I concur with your post and needless to say I’m extremely disappointed with the news; especially without any type of warning to the shareholders. I speculate that there might have been certain legal stipulations that prevented Starpharma from releasing this information. However, this is purely theoretical on my part and I believe Starpharma could have been more forthcoming in this respect.

In your opinion, where does this leave Starpharma and does this event justify such a sharp downturn? My conclusions just lead to more unanswered questions:

From the company standpoint:
• Obviously the mega-merger between Reckitt/SSL was bound to hit some roadblocks so what precipitated Starpharma to walk away from such a lucrative deal with a multi-billion dollar corporation?

o Is the market launch with Okamoto progressing well enough that it gave Starpharma enough confidence to cancel the Reckitt agreement?
o If this isn’t a viable product then why did Ansell sign up for the deal in what I can gather is a relatively short time frame?

From a technical perspective:
• The share price is at its lowest level since February 3, 2011.
• The relative strength index has moved into oversold territory
• The price has dropped 16 out of the last 20 days.
• The trade count for the last three days (26, 132, and 279) has been at fairly low levels.

o How much of this downturn is attributable to the Greece Debt crisis?

In conclusion:
• Regarding my prior points:
o In my estimation, I think the Reckitt/SSL merger encountered some obstacles that ultimately negated the deal with Starpharma.
o I believe the Greece debt crisis is attributable for approximately 10% of the price decline.
• Finally, I believe Starpharma needs to be less opaque and begin to offer more guidance regarding its revenue prospects.