I read the 8K SEC filing and the new CFO, Eyal Rubin has a salary of $16,800 USD / month and was granted 25,000 shares that vest after 1 year. The $300,000 investment on the financial operations side at this early stage in the process of getting their first treatment to market brings up some questions to ponder:
1. Why so early in the process?
a. Are they so confident in eventual success, they want to get started on building their commercial side of the house right away?
b. Does his experience at TEVA indicate that the local choice, TEVA, is going to be the partner that brings a worldwide network of sales and distribution, worldwide regulatory legal experience, PR, etc?
c. Is Eyal going to raise money on the strength of the ALS results to be able to move other trials into Phase 2 before commercializing the ALS treatment?
2. Is Brainstorm planning to stay a development company and license for royalties or will they organically build up into an independent pharma company?
Comment: My gut feeling the royalty model because the worldwide overhead is too great. However, this treatment and technology isn't like traditional pharma where you need a salesforce promoting pills to each insurance carrier trying to get to be the recommended brand. I think the orphan status and patents will likely end up in a place where there is no real competition that can deliver the same or better results.
