Marketing pitch to Punters18 Jan 2024 10:26
Watched the marketing pitch to punters. All I can say is that it was mercifully short. One or two there clearly had a firm finger on the pulse but the format didnt allow them to delve deeper or challenge assertions, thus potentiully sparing Newland's blushes. Some of the back n forth was amusing. Newland's answer to why sp was where it was, another masterclass in deflection: its small cap markets, its lack of funding for biopharma, its Covid & bond purchases(!!). Then there was the usual obfuscation about what cancers Parsortix is FDA approved for apart from breast which led to Newland riffing/waffling about turning handles etc....: "If we sell it for breast they literally just turn the handle but if we sell it for lung they need to be happy with the results under their accreditation"
The blue-sky commentary about what the potential is with EISAI was also classic Newland, extrapolating figures over which he has no control, and then throwing in figures per test, for which he provided no 'workings' or context. This would be a neogtiation, and it is commercially stupid, and irresponsible of Newland to throw out figures like this...EISEI will no doubt be aware of what hes saying..
The lack of financials or forecasts was not a surprise given they cant hand out PSI. So beyond the above what were my takeaways?
1. Newland's evangelism on display trying to strong-arm the industry into adopting Parsoritx. His passion & vision were what sold me in the first place (plus the device)but there needs to be far more realism and less blue-skies, a point that may explain why so many institutions finally bailed.
2. Griffiths clearly unable to provide any comfort over revenue forecasts, or when and if another raise will be required. Given past history, highly probable before Q2 25. The issue will be whether they can secure a decent raise. IMO they can, but only if they can demonstrate genuine commercial progress that equates to proper cash deals.
3. A sense that beyond the public hoopla, privately Newland & Griffiths would be thrilled to sell. Hence Newland's musings about company being hard-pressed to resist takeover. Optimistic comments from punters that any offer would need to be multiples of current sp ignore the fact that many of the institutions have either sold out or written off the carrying value of Agl.
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