The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Fjoe - Don't know what you call bad or at what point. But buddy this POS is about as bad as you get. the whole lot is down the drain and they got just enough money to get through the rest of this year on crackers and water. their only lifeline is x110 and some other company to throw them a bid to sell the lot or file for default. not to mention the barrage of class action lawsuits headed their way for gross negligence and mismanagement of the company and its coffers of cash. someone should being doing time for this sort of behavior... So how bad do we need to paint this for you there Joe?
Not ALL bad ,,,at this point then ?
SanMartinho, I’m sorry to hear that your association with Midatech has been such a painful experience. I also deeply regret that the 42 members of staff in Bilbao are being made redundant and the impact this will have on their families. I do not have any knowledge of the day-to-day running of the company – so I’m not in the position to comment any further.
I, like many other shareholders, invested in Midatech in the sincere belief that it would use shareholders’ money to develop tech-based drugs that enhanced and extended the lives of patients, and that it would do it in a well-managed, financially sensible and timely manner.
Jim Phillips announced publicly in February 2015, “we are well funded, that money should last us the next four years… and at that point we are looking to be profitable.” The company had just raised £32 million at IPO. And yet within just over a year and a half he was back asking for another £16 million from shareholders. Sales of Oravig in the US had been disappointing, resulting in an impairment charge of £11.41 million.
With four sites in four countries (England, Wales, Spain and US), they failed to control expenditure and they failed to progress their most valuable assets, their tech-based drugs, in a timely manner. The whole focus should have been on them from the beginning.
NTMichu -Its all wishful thinking man. I could wish, hope and dream of a 25 bagger on this POS stock let's hope they get something right out of this mess and get x110 approved and save some children and ease some parents misery. if 110 can fetch 35-50 mil annually then we can settle on a 8-10 bagger and get it back to 18-20p and sell the lot to some company for pennies on the dollar and get us some money returned to us. finger crossed.
Jim Phillips was right when buying Dara. This was a good move for income while the R&D took place in Europe. It was Dr. Cook who insisted in making money from Dara to expand his megalomaniac R&D illusions. Many projects ongoing and none to get revenue from. Only spending money all over, dozens of grants, dozens of loans and constantly bleeding investors. Who set up Bilbao from scratch? Who put his health and literally his life into the whole project just to be fired by Craig Cook with such a lack of respect and absence of dignity?. Justin Barry, my husband. He died three months ago. He was fired by Craig Cook when my husband confronted him for the way he was doing things. Justin invested 12 years of his life in creating Bilbao from scratch, he hired one by one the fantastic team the company ended up with. But Craig dreamed a dream of fantasy and wrongdoing, not only in the way he treated people but also managing to get away with every one of his delusions. The Board has to respond for this, as he was his man of confidence (ditto).
42 families are now without job and is that all? Who is going to be responsible for this fiasco? Justin Barry was a QP worldwide considered, an honest man, hard working and always caring for the company but with his feet in reality. He created the plant of Bilbao Biogune. He devoted his life to this plant for twelve years until Craig Cook decided that Justin was a stick on his mad wheel. Craig, if you ever read this ( I doubt it) I hope you think a lot about Justin and what you did to him.
Now you all understand my post two years ago.
You're some man for one man George.
INCREDIBLE news that.. I was somewhat - but not totally - downbeat about this going forward in truth, but have just had an Galaxy sized pivot on that .. and am just about to put a deposit down on a new car, in anticipation. ( great deals out there at this sad Covid time )
So lets just roundly say the 150 m gbp then George.. less sundry wide ranging expenses of course.... and versus current market Cap. of around 5 to 6 m Gbp that's a very approx. a 25 'bagger' from here, no less. 'Just the 25 bags' !!!!!!
PS; That's definitely USD and not for eg Jap Yen you're quoting ?
Fair Value in my opinion is $700m for the lot....that's all patents, real estate, commercial equipment and intellectual properties. What they will likely settle for is $100 - $300 million. That seems like a lot to some of you but when you calculate the value of the technologies and patents along with the time the patents exist and the value of 110 that's about right.
I totally agree – what a missed opportunity. It appears that their incompetence is surpassed only by their arrogance. In my opinion, that decision of Jim Phillips to buy the ‘American dream’, which soon became a nightmare, is at the root of this omnishambles – a near fatal self-inflicted wound which never healed. That ‘leg’ had to be cut off eventually. Now they have lost the other ‘leg’. The company is left crawling, while many of the people responsible for the mess walk away. No doubt they will have an inner narrative about unprecedented circumstances so they can ease their own conscience. But they know in their hearts they should never have allowed it to get to this in the first place. When you keep having to change strategy – it is clear you do not know what you are doing. Have the humility to admit it. What shocks me most in all of this is that the non-executive chairman is Rolf Stahel. His Wikipedia entry says he is ‘a Swiss businessman who was CEO of Shire Pharmaceuticals from March 1994 to March 2003, transforming it from a private $30 million company into a member of the FTSE 100.’ You think he would be a safe pair of hands.
Rant over.
If they can’t turn this around within 8 to 10 months, the length of the cash runway – then the company should be sold. Let’s see what CMS do first. They don’t appear to have done anything so far. Under the license agreement:
‘CMS has rights to develop and commercialise the Company's pipeline of products (including any products which are in or enter into pre-clinical or clinical development within a period of three years) in Greater China and certain South East Asian countries excluding Japan and South Korea (the "CMS Territory") in perpetuity. Subject to certain milestones being achieved, the Company will be entitled to receive regulatory and sales-based milestone payments as well as royalty payments.’
‘Pursuant to the Licence Agreement, the Group intends to manufacture and supply the licenced Products to the Licensees, who will be responsible for developing and commercialising these assets in the CMS Territory with a right to manufacture them if the Company cannot or does not wish to supply the Products to CMS or its licensees.’
Other drug companies will want their tech, pipeline and know how. What would be a fair value for all of that? I’ll have a think about it.
This is a massive missed opportunity. Never have I seen a company managed with this depth of incompetence. They had a better than average chance of getting a marketed drug but dropped the ball financially. The scientific data was looking good, which is the most frustrating part of this shambles. No failed trials or problems with the tech. Lesson for me from this is to remember the f**kwits involved in this company and not invest in anything they touch again. This includes the supposedly well respected members of the board. At best this smacks of a compete loss of oversight. I would guess the value of the tech is at around £10-20M but who knows in this financial maelstrom we are in at the moment. Any other thoughts on value?