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Re: tfris post# 8928

Monday, 02/18/2019 5:23:17 PM

Monday, February 18, 2019 5:23:17 PM

Post# of 10354
The concept of producing inventory without a clear distribution plan in ARTH's situation is problematic. First of all, a distribution partner may wish a 'private label', using their brand names. They may wish that neither the name AC5 nor ARCH Therapeutics appear on the labeling; ARTH won't know until they negotiate a deal. Secondly, inventory - including finished goods, WIP and and components - ties up working capital which seems to be in scare supply in this case. Thirdly, the shelf life period starts counting down once product has been produced, packaged and sterilized. I fully expect that Norchi is well aware of all of the above. Most likely, Norchi meant that ARTH would start to acquire components when he made his remarks.

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