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IMO Sidransky needs to step down as Chairman of the Board. The buck stops with him. Firing O'Connor but having no plan and leaving an ICEO in for 10 months of silence that culminated in a $2 raise when the stock was $7 10 months before is unacceptable. Meanwhile at year end, the executive management team got raises because they commissioned a consultant survey saying they were underpaid. You can't make this up. Just disgusting. It's been revealed the Emperor has no clothes. Sidransky could go down as the Madoff or Milken of biotech.
Agreed Batermere, Tony Lombardo should be ashamed of himself. What a way to retire, stood motionless like a deer in headlights for 10 months overseeing an additional 75% loss in shareholder value that culminated with his selling 20% of the company for $2/$20 million. What a disgraceful way to end a 50 year career. He should be paying ADXS and forfeit his RSUs upon exit.
I suspect they'll end up taking what they can get, just don't see how they can be selective like that when they just sold 20% of the company for $2/$20m.
Our NEO deal wasn't as strong as Adruos deals with J&N but at least we got $40m upfront. Every other deal O'Connor did got no upfront cash (except for $1.5 million for the PETX deal). Hopefully Berlin will be able to strike a deal for HOT at least as good as our NEO deal with Amgen.
There was also a follow on J&J deal for lung and other cancers valued at more than $800 million. For that deal, it was disclosed that Aduro got a $30m upfront cash payment plus $55m from an equity investment.
I am on a phone so not sure how to copy a link. They're not my claims, they're what was disclosed of the Aduro deals with JNJ's subsidiary Janssen. I only posted on the subject because I read a post where someone thought Aduro got $400m in upfront cash from JNJ which is categorically untrue.
Google Janssen Aduro Deal and you will see there were two deals. The first was on prostate valued in the $300 millions total value including milestones. The amount upfront wasn't disclosed. Then in the same year they struck another deal valued in the $800 millions with $30 million upfront cash plus a $55 million equity investments. Just thought this was worth posting because claims they got 100s of millions in upfront cash is not true and sets unreasonable expectations for ADXS. If Berlin can stike a HOT deal comparable to our NEO deal with $40 million upfront cash plus that would be solid.
Since Adage has between a 5% and 10% position if they had sold as much as 1% they would have been to disclose it within a few days, so it's encouraging that they haven't. I agree that the significant drop in short interest is encouraging as well. Short interest is now where it was in 2014 when the stock was in the $3s before the run to $30. We just need a catalyst now to move back up. IMO the $2 offering sealed the fate of Tony (Do Nothing) Lombardo and Sarah (am I really a CFO) Bonstein being shown the exit. Hopefully Berlin will prove to be a good CEO and salvage the shareholder value destroyed over the last three years.
Options are ok, because they require value creation and are aligned with us. O'Connors options are currently worthless. RSUs are the problem because they are freebie giveaways not tied to performance.
I hope you're right Blue, unfortunately so far the longer we have waiting the more shareholder value has been destroyed. One silver lining behind Berlin's extremely generous option package is motivation to get the stock price up. I believe he received around 750k options and RSUs around 200k. If he sells the company for around $12 that's a $10 million payday for him. I could see that happening within a year. Hopefully he's learned in evaluating the past mis-steps and value eroded at ADXS to see that the more dilutive capital that's been raised has directly correlated to value erosion. If he strikes the right licesning deal (say for HOT similiar to NEO) he won't need to dilute again, then from a buyers' perspective the company looks very attractive with two deals valued up toward $1 billion in futures milestones and royalties. He may view a sale within a year as preferable to kicking the can down the road and risking his options being worth nothing due to the continuing dilution cycle.
I remain hopeful we'll see value creation in the end because the platform remains promising. You always see the glass as half empty no matter what, so my point is why bother holding.
I know, hope it's not a curse! In defense of Moore, at least he was honest and for us through a Phase 2 with solid results. O'Connor used those resultes to raise a lot of money, burn through it with a poor unfocused strarefy and line his own pockets while destroying a lot of value and setting the compnay on the crash course that got us where we are today. As long as Berlin is honest, I'm going to give him the benefit of the doubt.
Give the guy a chance. Former company not ADXS, different situation. Ken went to Princeton, so we know he's smart and our only hope to turn the company around and salvage the value destroyed. Of course, an alternative to complaining like a sissy is to sell your shares at 9:30am tomorrow morning.
James, agree, that is interesting. Indirect signal that our combo trial with Merck is looking good? Also interesting that INCYTE has a valuation over $10 billion. IMO Tony (Do Nothing) Lombardo and Sarah (No Controls) Bonstump should have not gotten a penny of severance or any of their unvested options for doing a $2 dillution when the stock was $8 a year ago.
Donjay, feels like dejavu 2013 during the transition from Moore to O'Connor when existing shareholders nearly got wiped out. Hard not to be cynical having been invested more than eight years across now three CEOs and an ICEO and the only ones who have benefited financially are management despite the company advancing to late stage, while investors who have funded the company seen 80% of their capital destroyed.
Boy was I wrong thinking a buyout was in motion. Very disappointing to see this development. We can either 1) sell or 2) wait it out. The company has already lost 80% of its value. The risk of waiting it out is that we loose the rest if they company goes bankrupt. IMO the pressing question is whether the value destruction is due to lack of interest in the science/platform or poor business management. We have thought it was mostly poor management, but the compnay is trading at cash value pegging the value of the science at virtually zero.
Thanks for the efforts of all making calls and holding the company accountable. Not even 10 months that TL has been at the helm and the stock fallen from $7 to sub $2, and $7 represented a 40% erosion of shareholder under O'Connor. I trust this current black will lead to a happy ending with the company being sold and ADXS finally made whole whole the compnay is put into stronger hands which will benefit patients. The company has failed across the last three CEOs/ICEO to build value, now is the time to pass it on. I think the BOD finally gets it and TLs mandate is to sell the company.
I am not am expert in the subject, but Donjay after seeing Cattdoggs assertion without any definitive source asked a contact person at J&J who said BPs fall under the same reporting requirements as everyone else, which would require them to issue a Form 4 within days if they increased their stake above 10%.
Scott if Amgen increased their stake to that level they would have already been required to report via a Form 4.
Seriously? So you think the 5 execs are still at the company?
Agree TC, and leading up to the company's only monetary deal with upfront cash and equity investment (Amgen on NEO in Aug 2016) there was not any kind of black out period like we have seen in the past month. The recent activity is not in line with just another licensing deal.
Jc, hard to tell, I could be wrong but I just don't see what's happening as a deal on AXAL. IMO the signals point to either a sale or some kind of change of control. If they wanted to stay independent they would have already hired a permanent CEO or made TL permanent. They could have gotten rid of those execs as part of finalizing a deal (acquirer may have wanted ADXS to tighten the ship so the buyer doesn't look like it's taking an ax to jobs post buyout). Also, at the annual meeting an imvestor reported TL alluded to AXAL getting old and a small market. I don't think AXAL would command the kind of upfront cash ADXS needs to stay independent without having to do more destructive dillution. The has a Phase 3 asset and attractive platform but value has eroded due poor management. I think the BOD recognized that and put TL to sell the company.
If that's what you really think is going to happen, then you should sell your position on Monday, no?
So what is he going to say, "there is a buyout coming?"
I think something is imminent, may have been done by now if it weren't for the hold. Hopefully by the end of 2Q18 ADXS will no longer be an independent company.
Pretty strong evidence they are gone since they are no longer on the website and the company will not answer if they are still there. If they were still there, the company would have likely simply confirmed it especially since they were part of the senior management team.
"If they were fired wouldn't there be job openings?"
Not if they were fired as part of a sale condition with the acquirer absorbing the functions.
Easy you better hope we don't have to wait until Europe approval for a deal or sale. If they sell another 20% of the company at an all time low stock, the destructive impact to our interests would be irreversible IMO. It's a death spiral. I trust they will do what's in the best interests for the company's owners and patients. If they wanted to keep screwing shareholders, they would have left O'Connor in place.
The new ones benefited from our getting diluted to oblivion so their return requirement will equate to a lower stock price. Think of Ocata.
That's fire sale IMO. I would think the entire company should command $500m/$10 or more. When Tony stepped up the pos was around $7 and his objective has been to great more value than that. Hopefully the $2 raise was because a deal was in the works. If nothing is going on, we are screwed and the $2 offering was a desparete move.
Cattdogg all the big hitters except for Adage already sold.
If nothing is brewing behind the scene then we are screwed because another dilution at the current price would cripple shareholders and erase years of progress the company has made in terms what shareholders see. I think the market sees that worse case scenario because the company sold a whopping 20% of the company for $2/$20m. I still think something is going on because they would have already named a CEO if they wanted to stay independent. At fire sale price, I think the company would command at least $300m/$6 share price given we are phase 3 and have a deal with Amgen that could higher future milestones. Selling the company at that price would be more in our interests than doing another dilution on terrible terms IMO.
IMO at this point they have already agreed on a sale price, but it won't be singed until after the hold is released. Hopefully it is t least $500m/$10.
Thanks, that statement COUPLED with the fact they were removed from the website is as close to conformation that they are gone as coming out and stating it directly.
Look how much shareholder value has been destroyed in the last few years. It's shareholders who have been harassed and beaten by ineffective greedy management of the company.
Tony Lombardo and ADXS Board, please just sign the deal already and pass the company onto stronger hands. Everyday that goes by that ADXS remains independent and employees clock in and collect another paycheck, ADXS owners lose money and those losses will escalate further the closer we get to needing to do another dilution on horrific terms like the recent sale of 20% of the company for $2/$20 million.
Hoping by mid-year Lombardo will comfortably be able to retire, ADXS will be in stronger hands as a subsidiary of Amgen and long suffering ADXS imvestors will no longer have to subsidize the Best Place to Work in New Jersey.
Agree completely, and I think that finally woke up to that and its happening now.
Everything happening today is because of DOCs unsustainable strategy and keeping constructs in house as long as possible and the unfocused high cash burn. All along he was keeping AXAL US and Europe rights for big bucks later. Well now TL implied at the annual meeting AXAL is getting old and a small market. So here we are, setting up for a sale because ADXS as a stand alone company no longer benefits investors or patients as Amgen could manage the platform much better.
Don't make more out of it than it is. Interim CEO with a deal making background put in to sell the company because previous CEO's strategy wasn't sustainable and destroying value. Wait until the black out end to hear the terms of the sale.