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my guess is garnick would prefer a legit BOD respected in the industry and not some penny stock players... i wondered why garnick kept a low profile w/ his pphm relationship..
would you broadcast a relationship with the bod? i would hide it..
yes.. good conversation ...
the most important takeaway for me is they would love to see value in bavi and the IP... but the market will determine that..
and if there is interest. it needs to be in stronger hands..
they will hire an IB to evaluate and hopefully sell to BP... if there is value there, they will try to get max.. they will be methodical.. lots to work out regarding sale and structure
stafford has been in biotech for twenty years, knows players and knows how to do deals...
i agreed with that plan because mgmt has no business running anymore trials because of the dilution and how could they compete with BP in getting patients... (and getting messed with again) and even if they were successful, the company has no credibility... the BOD is a major drag on the company...
on the IP side and from another source, confirmed that the msk comment on the cc call about car-t is true... what impact on value, who knows..
so putting the two calls together, imo there should be some level of interest but at what price... throw in patent exp issues etc.. lots to sort out but the tech needs to be in better hands... just wonder if wolchok could help with placement... and i'm sure stafford folks would explore that avenue
IMO we have a choice of proven operators that would do a much better job of creating value and aligning themselves with shareholders.. stafford was paid $40k in cash at xencor and brings value to the party vs the $300k paid to PPHM lampreys that offer no value and hurt the company in the institutional markets...
The BOD imo is really hurting MC.... and the company keeps raising money to pay BOD fees... If the BOD stepped down tomorrow, we would get a big jump in MC imo...
one more thing... the gravy train is over...
word i get from someone close to situation and has talked with ronin group is the IP will be monetized in methodical manner with an IB in a competitive environment...
they would love to see value in IP... if MSK, Brekken are right, interest will be there... but it needs resources and capable hands to advance the ball...
first steps first... improve the BOD and get credibility with company..
We will need to compile a list and present to attorneys. I have filed an objection and plan on being at the hearing. My guess is they will try to stop me. IMO the plan has been to delay docs to give folks no time to respond by the July 12 response date. The cc date on July 14 was planned to come after response date. All IMO.
Note in the Ronin letter they mention mgmt's efforts to stymie them. Same with previous attempts over the years by shareholders to put folks on the BOD.
It is different this time. Ronin has the horsepower.
ES CJ and DP are all one unit imo. ES is the ringleader and cj and dp are his lackeys imo. The question is whether SK is part of that unit. My guess is he is a willing participant.
The deadline has passed for objections to the DS. How many folks got the docs late? Did you get 14 days like the attorneys get? The DS hearing may be a good chance to unseat the BOD...
after reading the ronin letter for the third time, makes me wonder what really happened in fargo... and mgmt's response to it... basically got nothing out of it and it was swept under the rug when it should have been on 60 minutes... i hope these guys are packing their bags.
again, once the ronin crew is on board they need to affirm per nasdaq that the bod doesn't have any conflicts... the legit bod will ask cj and es to recuse themselves in the affirmation and then vote cj and es have a conflict and es or cj or both goes.. problem solved.. if they have not been run out of town by then.
remember the good old days when it seemed the shorters seemed to have the playbook?
From the Ronin letter:
"Typically, the Roswell entities provided "equity funding facilities" that allowed highly questionable companies to issue soon-to-be-worthless stock to the general public. Importantly, the Roswell entities were merely acting as a conduit to raise money for such companies, and were not actually investing capital into them. In fact, most of these equity funding facilities permitted the Roswell entities to short the stocks before purchasing discounted shares from the company, effectively allowing the Roswell entities to lock in a profit at the expense of the public without making any investment in the companies. There is no shortage of other unsettling public company dealings from the Roswell entities, which we can detail in future communications."
Roswell closed down. The BOD seems to do everything they can to avoid oversight...
If someone had the gall to short PPHM on insider info, they would have created a money printing machine...
Love to see this investigated and if needed, clawback time... or jail time...
all it will take is an invitation or rfp to BP's that are interested...
if bavi is what they have been alluding to and if MSK gives the blessings at whatever level... then two or three bp's competing will drive value..
basically an rfp with here are the goods...
check out the IP results to date...
here is the structure we are considering...
and if you want, propose a structure that addresses the following
outright sale
or interim partnership until further pivotal trials...
upfront, milestones, royalties or contingent rights..
how many shots on goal and what is the development plan w/ penalties for delays.. ie if you sit on it, you pay...
and BTW, you can take the team with you if you see value but they don't have to go with the deal ... same with previous demands such as U.S Rights and SK gets to remain king......
and please note our current BOD just had their nuts handed to them and will be happy to see any deal so they can sneak off into the sierra madres and avoid DS 2.0...
we are here to do a deal because we got a plan to execute..
my guess is mgmt wants one more try to hit the bavi homerun or major inflection point and that would require capital... the problem is it's not their capital, it's the shareholder's capital and that is not a problem for mgmt... dilution on the margin does not impact them when they just created 7 times the PPHM currency money supply... and they laid the groundwork for the next set of shareholders with the "antibody" bandwagon...
the value of bavi can still be recognized with upfront money, milestones and contingent rights or royalties. i prefer BP do the heavy lifting now because of the resources and credibility needed... and BP can put many more shots on goal... if bavi works, they will exploit it and develop the platform.... the football needs to be pried from the 3 year old's hands for the game to continue..
yes... and if the value was tied to sk and crew demanding that they continue running the show, getting rid of that demand (and sk and crew) could actually increase the value...
imo the reason for nasdaq extension was to stay out of the russell rebalance. if they did not get the extension, they would have had to do the R/S beore the rebalance and they would have easily made the cut. and maybe they were just asking for an extension just beyond the russell dates. a competent CFO with any brains would have jumped on the russell wave to increase both share price and institutional ownership. that would have caused 20 mil plus shares to be bought up by institutions. think about it... ever since the feb 2016 date, an iron fist has kept the share price locked in an very tight range. and there was absolutely no effort to support share price. and "the tube the share price one last time with rev miss plan" was put in place in march/april before ronin was a known threat. and i think ronin started messing with the plan and thus the massive dilution at pennies on the dollar. i think the MO behind this plan behind this is to feed some entity a whole bunch of cheap shares at shareholder expense.
and now with ronin, the power dynamics have shifted. can ronin squeeze these guys out? any BP that was in talks should see the shift. my guess is that BP want's the IP but without the demands of sk continuing as captain and his U.S. rights position. and BP would probably prefer to deal with ronin because he knows how to complete a deal.. the good news imo is that mgmt's list of demands has probably been torn up. forget the purple m&m's steve... but ronin will need shareholder support in flushing sk and crew out.
mgmt imo has a short window to get as much as they can before they see the exits... and even if they see the exits, DS 2.0 is waiting in the wings... all imo..
sounds to me it was a material event and should have been reported... they affirmed rev on the earlier cc...
ronin forcing value recognition helps ronin... ronin is in a win win spot from here on out...
baitball forming... greed still in vogue... get some popcorn...
with car-t play and novartis relationship w/ xencor (stafford).. don't rule out novartis... and the graph reflects opdivo responders... if sk and club sell ip off, BMS could be a player...
and don't forget azn bought some manufacturing plants in CO...
the game is now who will control the ip cause pphm lost the driver's license..
it all come down to how this worked out and why... probably not a material event to the customer.. material event for pphm... should it have been reported at the time?
"Revenues could have been even higher if not for the need to delay shipment of several already-released lots of material due to the needs of the customer."
the bod will be gone... sk will step down or leave... pl is gone... mz is gone given he helped entrench the bod.. all imo..
so the gang has to max value for themselves and soon... that's what i would be doing...
either they are playing possum or just plain stupid... the lights are on and all hands on the table... place your cards on the table and let's see the river card... who wins the keys to drive or sell either the Cadillac or Chevy...
last message to ponder...
the value of the assets will not be under the radar here on out... there might be differences of opinion but cards will be on the table... the river card is BP...
note B. Riley on call.... they bought out FBR recently and FBR was on last CC..
i can imagine an IB working 24/7 on valuations of the various components..
any move will be under scrutiny and mgmt knows it and the BOD is helpless to "exert their wealth of knowledge"...
one question that needs clarification...
mgmt says rev's flat looking forward and backlog of $58 mil..
how does the $10 mil miss that is added to fy18 fit into the statement..
if rev flat at $58 mil, will rev be $68 mil or did they lose a chunk of biz or was order fulfilled an $10 mil covers the drop off...?
The science is as ripe as it can be for the next step which is putting it in capable hands with resources and reputation...
just with car-t and pdl potential playground, we should be at $600 mil to $1 bil plus in MC imo... pphm mgmt cannot tell a good story or does not want the story out.. showing the graph without explaining what it means???
either they are complete liars about the msk story or there is value there.. i think msk would stop a fake news story in its tracks...
how many bp's would throw out $150 mil upfront (or more) plus milestones plus royalties or contingent rights? but the key part of value creation is separating the ip from the pphm taint... that's ronin's job... all imo
and thanks for the comment...
and one song comes to mind for the sake of mgmt...
what are your predictions... how does this play out?
this was sent to diaz on july 9...
Stephanie,
I noticed that AstraZeneca (AZN) references PPHM in their partnering brochures including the one updated in May 2017. When is the last time PPHM even mentioned AZN regarding partnership status? Please note that AZN refers to PPHM as “Peregrine” as if they were old friends and on a first name basis. Perhaps PPHM should contact AZN and correct the name to include “Pharmaceuticals” to provide more specificity to the relationship. It doesn’t appear that the number of characters in the name was a concern given several of the entities listed have longer names. There are definite changes to the AZN partner roster (including deletions) so one can assume that a company like AZN would not put out incorrect information.
https://www.astrazeneca.com/content/dam/az/PDF/AstraZeneca_MedImmune_2016_17_BD_Partnering_Brochure.pdf
https://www.astrazeneca.com/content/dam/az/PDF/2017/2017_18_AZ_BD%20&%20Partnering%20Brochure_FINAL.pdf
I would certainly hope that PPHM is not sitting on material information particularly with the recent reverse split. I can understand the reason for the split but what is perplexing is, in my opinion, the missing of the Russell rebalance where probably 20 plus million shares of PPHM stock would have been bought up by Russell related funds. I do believe one of my earliest emails from you where you stated one of the goals for PPHM was to increase institutional ownership. As you may be aware, inclusion in the Russell related funds provides a stable base of institutional investment. For some reason Mr. Lytle and the Russell seem to be like ships passing in the night. Before your time and many moons ago, the company sold shares on an important Russell rebalance date and just missed the Russell by a hair and was subsequently booted from the Russell which resulted in millions of institutional shares being sold. One wonders how a CFO can continue to make mistakes like missing the Russell.
Please note the proposed settlement of the Derivative suit mentions issues such as timing of the granting of options and the releasing of material information. The company stated that they were pursuing several paths to avoid a reverse split but some of the obvious paths such as adding qualified board members or updating important material relationships were not taken. Also, please note that many investors did not receive the information in a timely matter and do not have the luxury of 14 days that the attorneys were provided for the July 27, 2017 hearing.
On a final note, I’m not quite sure Mr. King understands his fiduciary responsibility to shareholders with respect to the valuation of the company. I believe over 10 million options (pre split number) are still in play and it appears that share price is not a concern even in the face of robust ATM sales at a fraction of paid in capital per share. I certainly hope that the forthcoming conference call provides shareholders good news in terms of righting the ship. Or will we see another “revenue miss” story?
Sincerely,
some will get coal... and the new bod will get the options for the rev bump that got shifted right into their hands ... a parting gift from the clowns... and hopefully PL and MZ are out as well...
my guess is pphm scrambling to get the best deal for them with bp...
life is good...
CSI PPHM... episode 97
The old saying "Follow the Money"
Ability to fine tune revs by year... infinite number of ways no one can question... alibi secure..
PL cc answer to question... notice the word script... the script was written in feb when the the ds settlement script was being written.. remember pphm defendants are going to come out of pocket $1.5 mil (OR CAUSE TO COME OUT OF SOMEBODY ELSE'S POCKET) as part of DS settlement.. they did not see ronin showing up in scene 4 ..
"Yes. It's quite complex, in terms of timing and lot release. And as we mentioned in the script, we had $10 million in revenue that was expected to ship by the end of April. And due to unforeseen events that were outside our control, that now has shifted into fiscal '18. So that's a large, lumpy number."
what happens in summer every year? santa comes with options (off season work for santa cause times are tough).. only this year lots of eyes watching santa... and he is waiting on the mid year naughty or nice list
so tube the share price, get your options, settle the ds and do the deal... note the dates are very well planned... get DS docs out late for July 12 response deadline, July 14 friday CC... oh we missed again ... so sorry.. he he he
but the wedding crashers arrive... stafford and smith
fun times ahead... ha ha ha
BTW... i would have been more disappointed if they hit their number and could justify pphm mgmt running the ship... so the rev gets shifted which helps ronin build his story for next fy and cements the story of why the bums have to go... the plan backfired...
an investor i communicate with sent me this comment...
"Maybe I'm just worn out by these bums but it always seems like they are moving onto the next big thing and then it fades. I guess that's the world of drug development."
My response imo:
It’s not the world of drug development… it’s the world of sociopaths that found a way to enrich themselves off the backs of shareholders. The way ronin will play it is “win, place or show” with the ip so some value is recognized day one and if it's a winner, shareholders win. and a better chance of winning without the 500 lb jockey that's never been on a horse... win, place or show will give ronin the capital to expand avid… and capital will become easier to raise once institutions jump on board with a new focued mgmt. team….
PPHM mgmt. either has a deal in their back pocket or they are toast… and if you are BP and BP's are not stupid, would you rather deal with ronin or the pphm idiots that have never negotiated a legitimate deal? My guess is pphm thought they had one more go at a trial to win the lottery with the ticket paid for by shareholders and it cost pphm mgmt virtually nothing with the shares created by the R/S.. and that plan is toast with ronin… and I think ronin caught wind of their plan and thus the preemptive pr before the cc… well played ronin… If I were BP I would rather work with ronin than a bunch of fools… and the stench pphm carries with them, why would anyone want to get in bed with them… BP has the cards now
You state..
"We fully believe in the outstanding potential of Bavituximab, and we are very, very concerned that our second major stockholder does not. MSK believes in us, but for some reason, Ronin disagrees with MSK."
I don't think ronin has stated that... ronin says monetize the ip and put it in capable hands... even if pphm were to continue to develop the ip, i doubt the market would recognize any value creation due to the turd factor outlined in a previous post... if msk has a high opinion of the tech, ronin will get the value.. and a stronger institution will get more shots on goal and better access to patients...
pphm cannot sell shares at 20% of paid in capital to fund trials and the ip cannot sit on the sidelines while the i-o world is going at warp speed...
from the ronin letter
Peregrine must immediately cease all clinical development activities, adjust its cost structure accordingly, and begin a process to monetize its intellectual property, either through an outright sale or a contingent value right to a larger pharmaceutical firm that has the financial ability to underwrite further studies. Peregrine's losses are entirely attributed to its roughly $30 million in annual clinical development activities. By stopping clinical development activities and monetizing the intellectual property, many of Peregrine's problems will automatically be solved, as it will no longer be deeply unprofitable or need to constantly dilute stockholders at such a rapid rate. Furthermore, this will enable Peregrine to focus on profitably growing Avid, which will no longer have to internally compete for capital with the extremely risky clinical development spending.
the fruit is ripe... as ripe as it can get with the current mgmt team...
just need ronin to set the fruit free...
car-t players plus pdl players... novartis is a car-t player and ronin has done deals with novartis, merck, jannsen... add azn to the mix... if MSK is excited (unless they are misstating the facts) , one of these players will step up... the delay has not been the tech.. it has been the self serving position of mgmt in negotiations imo...
reread this article... see where pdl less than 1% falls... the players don't even bother with less than 1% crowd and most set the bar at >5%
https://jitc.biomedcentral.com/articles/10.1186/s40425-016-0153-x
the sad part is the tech has been on the sidelines in slow play mode ... i had this same discussion with P. Thorpe years ago and told him the BOD was not acting in his best interest... not for long... great cc in that mgmt is toast... they either do a deal soon and it better be a good one or mgmt is gone and a deal will happen and institutions will come in once the current team is gone...
and either way i think the mgmt team will be dogged by lawsuits for some time... clawbacks... open up discovery on roswell and trading...any wonder why that outfit closed down...
from the cc
Andrew Jacob D'Silva, B. Riley & Co., LLC, Research Division - Senior Analyst [21]
That's interesting. Does it have to be CAR-T or are other immuno-oncology optionalities open as well? Or are you kind of just focused strictly on that vertical right now?
Steven W. King, Peregrine Pharmaceuticals, Inc. - CEO, President, Director, CEO of Avid Bioservices Inc and President of Avid Bioservices Inc [22]
No, they're doing -- that's one of their favorite projects. So they've really been excited about the data, because if you look at the results that were presented, it's really the ability of bavituximab to enhance the activity of the adoptive T-cell therapy versus the lack of any additional toxicity and when they compared it with an agent like OX-40 that actually also increased activity, but also had more safety events, then they really like that approach. But now this could extend to PD-1, PDL-1, probably quite a number of other molecules that there's an interest in. So there's a lot of interest across the board, because I think as the field is maturing and more results are coming out, you're running into 2 things. One is, drugs just don't work well together, either from a safety standpoint or there's no enhanced efficacy, and we're seeing more and more of that reported. And I think there's a real window of opportunity here. In addition, of course, you have patients that are on treatment that develop a resistance to the therapies, and that opens up another door for again, based on our mechanism of action for bavi to potentially reinvigorate the ability of the PD-1/PDL-1 inhibitor. So the Sloan Kettering group, there's quite a number of actual researchers there working on it, each of which are looking at a different aspect. So CAR-T and adoptive T-cell is just simply one of those.
if Stafford gets his guys on bod which he should if it only takes one vote, the board then affirms there are no BOD members with conflicts per Nasdaq def which is not going to happen so one of the es crowd has to go and ronin controls bod…. They should have granted options by now but ronin spoiled the party. It is also why the bad actors got the response deadline to the ds on july 12… if enough shareholders that didn’t get docs in time complain and get hearing rescheduled, that will mess up their plans and maybe unseat or alter the bod early. The bird is on the market…. Bavi is valuable…. These guys may get pushed out at the goal line… Seattle Superbowl comes to mind… interception at the goal line…
imo the decision was made in april to tube the qtr... one last shareholder blowout before the mystic data is available? ... PS is still with AZN as of this afternoon and will AZN jump on ps? Their MAY partner brochure says they are still dating... AZN or Mrk?
from the DS settlement...
(a) Monetary Consideration. The Individual Defendants shall pay
or cause to be paid $1,500,000 to the Company within ten (10) business days of entry of the Order and Final Judgment, provided the Company has provided timely wire transfer information and instructions.
DS negotiated in feb....
do you think these guys are paying out of pocket?
They knew the exit plan back then...
the ball is in play and ronin showing up will force mgmt to remove their control issue knowing it is going away with ronin anyway...
and the friday call served two purposes... destroy investor morale and how many analysts are going to hang around on a july friday cc for a turd company... not as many questions... no need to no no no not him..
these guys are playing you like a piano... and they are pros... reread the ronin letter..
and pay attention to the survival curve in the pr...
67% of the group were the less than 1% pdl club ... the non responders... and you can't compare nonresponder OS numbers to the responder OS numbers... all by design to answer a specific question... i did some research on the pdl trials along with sunrise... lots of overlap in trial sites and investigators with bavi and pdl at the very onset.. ...some folks have the answer... you are not one of them and your shares are needed... do the math of what that is worth along with the car-t potential.... the only problem is anything (including data) that is associated with these turds is that it retains that turd flavor
... the wheat needs to separated from the chaff before the bread is baked... ronin is the catalyst...
if he is still buying, why would he?
i heard what i wanted to hear... bavi has value... and is ripe for the next step.. we know avid has value...
the bird is in play and folks want your shares... mgmt wants you to give them up...
ronin will need help in cleaning house... word i get is even delaware has limits... the moat is not as strong as mgmt thinks
some accounting gymnastics to tube the qtr...
these guys are good and want you to leave... bet pl's laugh was rehearsed..
Inventories 33,099,000 16,186,000
Deferred revenue 28,500,000 10,030,000
the ip will be sold and shareholders will get fair value... it is ripe and the current team cannot add value even if it were to succeed because of the sullied reputation.. and the ip needs a lot of resources... the competition should be decent with the msk "current" stamp of approval on it... all one needs is two bp's competing..
the bird is in play... and mgmt want you to give your shares up...
if it was for ronin's letter yesterday i would be so frigging mad... good times ahead.. the rats will try to get as much for the ip before being thrown overboard... right now bavi has zero value... that is about to change...
good cc for the following reasons:
the thanksgiving bird is cooked and sitting on the serving counter waiting for the line to start... and some of the folks that are part of the family may not be attended due to recent divorce... and some brand new friends will be there from the new family.... and the bird carver is a ronin...a wandering samurai who had no lord or master... do you like breast? leg? wing? we got it...
my take... ip very valuable and a deal can be made now that would increase sp once both a deal is done and equally important, the BOD needs to go and sk goes back to the lab and lytle just goes..
the ip is valuable and a deal can be made now with upfront, milestones and contingent rights and royalties..
that deal will fund avid expansion and diversification...
but the ip has to be separated from the sleaze balls before value can be recognized. ... the sleaze you read in the ronin letter carries over to the ip, the company mgmt, all of it ... the clinical screw ups, sabatoge etc... the entire history needs to be cleansed..
and stating that r&d reduction is a positive when the biggest arms race is going on and bavi on the sidelines as another phrase used ... as resources permit"... absolutely clueless and it is apparent..
ronin .. can you start tomorrow? here are the keys...
i called this as well as some one else early in the week... they want to tank the price but my guess is they did not see ronin's move... the ip has value and needs to be put in the right hands... the avid is a timing thing and this miss works to ronin's advantage...
if bp has reasonable confidence bavi works on the less than 1% pdl crowd, the tech will be partnered in a new york minute... and be worth hundreds of millions if not a billion... all kinds of ways to structure a deal... just need a dealmaker... good money upfront buys several avid sites across the globe... this is good... a great time for them to screw up...
ronin was just handed the keys to the front door...
let's not be too harsh on mr pohl buying 286 shares... he probably bought 14,000 and they turned into 286. see ... i defended the bod when justified...
someone asked me about clawbacks... having some folks research it... stay tuned.
in the meantime, anyone looking for penny stock opportunities and perhaps a new sound system..
david pohl is your man..
http://maxd.audio/advisors/david-h-pohl
http://maxd.audio/
http://maxd.audio/blog/what-are-penny-stocks-the-good-the-bad-and-the-sexy
http://maxd.audio/blog
sorry but you can't make this crap up..
the bod needs to go. imo they are a cesspool and institutions will avoid until they are gone... they are a negative $1 bil in shareholder value...
PPHM's response:
"Our Nominating Committee will carefully evaluate Ronin/SWIM’s nominees consistent with that process. Following the Committee’s review, it will make a recommendation to the Board that is in the best interests of Peregrine and all of our stockholders. Stockholders need take no action at this time."
So folks with absolutely zero biotech experience and a dismal track record will evaluate folks with excellent experience and great track records. This is comical and shows one how bad and corrupt this BOD is.
Would love to see the committee meeting notes for all the years these guys were paid to be on the committee.
Would also like to see some actions before the state bar on CJ. Run these guys out of town.
Read Ronin's letter carefully. They say the current team should not be advancing the IP ball. The current team has zero credibility and the next step involves human trials. There is a big competition for patients among BP and PPHM has zero chance in getting access to the "good" patients (the ones that give you good readouts with data... wink wink). And even if they were to run trials, they have zero credibility no matter how good the results. In the meantime, other aspects/avenues for the IP sit on the shelf.
The current BOD amounts to a negative $1 bil in shareholder value. All imo.