Shareholders -
Had a few errands to run first but here goes...
Meeting started at 10:00 with Dr. Gomez going through the formalities of any corporate meeting. Votes were already counted and he gave the results although everyone there hadn't turned in their proxies. After the entire vote was counted the proposals for BOD and auditors were both passed by 86% or so.
The shareholder's votes turned in changed the numbers by less than .03%.
They announced that Monica has resigned for personal reasons and Susan Surplus would be replacing her as CFO. Susan has been working with Monica for the past 2-3 years.
They then broke down the acquisitions of "05". Kenna had 50k revenue, Ellipsis 308k revenue (which basically paid for itself in one year according to Richard).
Q1 had 678k revenue compared to 241k revenue of Q1 "05". Loss for the quarter was $2.6 million.
Richard was basically mum about the Biofrontera deal because of what I consider a confict of interest. He stated that it would be "verboten" for him to elaborate on when the IPO would take place but did say it would be "sometime in 06". He did hypothesize about what the expected IPO would be (18-20 euros) and consequent boost to the balance sheet of DNAP. He did mention it would take up to 6 months for it to benefit the DNAP numbers and a year having the stock "locked-up". He said they were exploring alternatives for funding but we've all been down that road before and I don't care to beat the dead horse any more. He did mention that after the Biofrontera IPO hits that there is a very real possibility of "Joint Ventures and Collaboration" shortly thereafter. This was illustrated by Dr. Gomez when he spoke on PT-201 relating to Opthalmic and PT-202 which dealt with Nasal. At best it would seem that these wouldn't even get to clinical trial by late "07-09".
They've had the EPO drug made for them by KBI of North Carolina and the drug is ready to start clinical trials. When the actual beginning was not given. Dr. Gomez mentioned many factors including the FDA that wouldn't allow him to nail down a specific date. He showed some graphs and it all looks great but will be way down the road before it will be FDA approved. In fact, Tony said "investors interested in sticking it out will be rewarded" but also included that it may take anywhere from 5-10 years for that to happen. Tony was very frank and downplayed the importance of Statinome and Ovanome on their importance to the success of the company in his opinion. They touched on the PONV (post op nausea and vomiting) the CD59 IDF test and some unnamed, as of yet, and other cancer projects dealing with Moffit Cancer Center.
Now having said that incredible mouthful, I left the meeting feeling like my timing with owning stock in the company is just too early for any significant rise in the stock price within at least the next year or two. I was intrigued with the idea that Richard gave to all of us that at some point the shareholders of record would be "taken care of" (heard that one before) and receive a stock interest in DNAP Pharmaceuticals if the drugs come to fruition. I think they plan on "splintering" that particular subsidiary and going into the drug making business full time. Tony did say that the forensics would not be enough to fund the company and they needed the drugs to hit for any type of success and resulting great increase in the stock price. I'll take Tony's word for it "it's a long term hold". I plan on trading in and out but always leaving some on the table in case the time line is accelerated.
If someone can add to this please do so because I'm sure that I didn't cover it all.
AI
