three months on....

It’s been three months now since a trading halt signaled the beginning of “Esragate”. To say that the event has left scars would be inaccurate when, truth be told, the wounds are still raw for many. To make matters worse, the wounds are still being checked and poked on a daily basis.

Some won't buy any argument put forward that Esragate might have a silver lining. I get that - for much of my life I fought calls to "think positively" myself. But life has a way of forcing changes. Now I can see the sense in Shakespeare's observation, "There is nothing either good or bad, but thinking makes it so."

So for what it’s worth, three months on, here are ten positives that I can find in Esragate.



• Esragate provided the impetus to sell for some investors who were already uncomfortable with this stock. As one said, it felt a relief.

• Esragate provided the opportunity for those who remained keen on this stock to buy more at cheaper levels.

• Esragate is said to have spurred those working at POH to even higher levels of focus and determination.

• In the same way that a burgled homeowner becomes zealous about security, one can be assured that from hereon in there will be meticulous auditing in this company.

• Those who were of the opinion that the lack of scientific publication was a weakness in the company will now see that weakness addressed.

• Those who argued for changes in the Board look likely to get their wish.

• Unlike some other unfortunate companies which have emerged from fraud investigations with evaporated funds, POH’s cash position is set to receive a small boost.

• CEO Harry Rosen’s forced extended return will have re-engaged him with R&D activities, staff and shareholders. This should positively inform strategy and investor relations going forward.

• If we didn’t suffer Esragate now, the company might have blindly moved forward into the big money stage with Esra still in charge of the chequebook. Just how ugly might that have got?!

• Demonised though she may now be, there is no denying Dr Ogru was highly regarded within the biotech community and by at least some within the investment community. Evidently she was a tough operator, brilliant at multitasking, clever with figures, talented as a scientist and articulate and engaging as a company spokesperson. For these reasons it’s improbable she would have been moved aside for another more experienced pharma executive as the company moved towards commercialization. Her deplorable actions have now presented POH with the opportunity to hire a new CEO, one probably better placed to take POH from the backwaters of Clayton to the world stage.

So as easily as it can be argued that Esragate might have mortally wounded the company, it can equally be argued that, after admittedly painful treatment, the company might eventually emerge even healthier than before.