What can we infer from Brendon Rae’s departure
The facts:
- His primary skill was in deal making (partnership or sell off)
- Despite what longs claimed was a “stellar” reputation and contacts list, he has failed and either left because of that or (worse) by fear of Cytodyn’s legal issues
- The temporary CEO Cyrus is also skilled primarily in deal making (and very weak elsewhere)
- The temporary CEO is only there for 6 months - probably if he can’t do better than Brendon
That means four things:
- Cytodyn sees no other viable strategies going forward than a deal strategy (partnership or a sell-off)
- We can thus forget about the other road (clinical trials - all failed plus FDA hold plus no recruitment of better profiles than the abysmal ones we have)
- However the deal strategy has failed until now - already one head out, even while Cytodyn’s market cap was 1/3rd of what it is today
- Actors in the industry (BP and other biotechs) are now aware of Brendon’s departure as we are - after disastrous clinical results and deal blocking legal issues with the SEC and DOJ they now have the confirmation that Cytodyn has generated zero interest from ANY competitor - a huge negociation lever against Cytodyn if one was crazy enough to want to buy the listed vehicle
Consequently Cytodyn is in a deadend - insiders just check the boxes to prove to shareholders later that they did their best, while collecting huge compensation packages for as many months as possible. I believe the only interest they might have is from a private biotech that wants to go public via a reverse merger. Their legal issues block such a deal and even if there was one the value would be close to zero - a few million bucks at most. Because there are many other listed vehicles available for a cheap price (usually 300k to several M$) for any private company that wants to go public without the scrutiny of the IPO process. But, again, these vehicles have zero legal issues. No acquirer wants unknown legal liabilities with the SEC/DOJ and past shareholders.
Cytodyn’s current market cap is x100 higher than what it could get in any deal. No dreams.
