Anavex Life Sciences Corp (AVXL)

[Good Ole Bill]

My thoughts on the Missling question.

Previously, I’ve noted that Dr. Missling has a problem in communicating with understandable enunciation. Also, I’ve suggested he spend the time and money to correct the problem or else engage someone on the team or an outsider to make important presentations on his behalf.

But to suggest that he is not a suitable CEO to lead the company to revenue generation is frightening based on one of my previous experiences.

Years ago, I held stock in another biotech with a strong candidate that was ultimately approved. The CEO we had at the time was also highly-degreed but did not perform well in presentations. He did not have the “zing” some thought was needed to excite the medical and investor communities.
The controlling shareholder brought in an outsider to replace the CEO. The new CEO was touted as a superior marketing talent who would take our sales to extraordinary levels. He brought in members of his former marketing team at another company.

Seems that within six months we got reports that the marketing team was “stuffing the sales pipeline”, booking sales that were not actually accepted by the clients. Further investigation revealed that this same marketing team had been guilty of the same practice at their previous company.

Long story short, the stock tanked as there were investigations. I sold my shares at a considerable loss. The company was taken over by a competitor which is still enjoying sales of the former company’s products years later.

We’d probably still be a separate, profitable company had we held our course and retained the “dull-speaking” CEO who had brought us success in research and development.

For those who want Missling to be replaced, be careful what you wish for.

Bill