Arch Therapeutics Inc (ARTH)

[Polyphemus]

Presentation was upbeat & stock action since presentation shows value of communicating. Stock is up from recent lows, though still -25% from recent price. At an inflection point. Anyway, now comes the execution.

Key items were carefully walked around. Does anyone have an idea of product cost or transfer price to distributors? Norchi avoided discussion of pricing, except to say that it 'should be' premium. Assume selling wholesale to distributors in Europe. Need an estimate of product price & cost to judge profitability. Do we have a pro forma P&L? So how do we value stock?

J&J bought another company with a smaller IP portfolio. However J&J is Number 1 in wound care globally. No comments about how ARTH will compete.

No estimate of use of working capital to build inventory & launch. $4M in bank is a starting point. More dilution likely to come.

Sleeper issue - Norchi mentioned that ARTH hopes that MD's will change clinical practice with regard to wound debridement. This is a very tall hill to climb.

At least, things are clearer than before the presentation.