GTC Biotherapeutics (fka GTCB)

[vinmantoo]

Acgood,

You hit the nail on the head. The complete lack of any management effort to reduce cash burn is the most galling aspect of their failure. This is what I just sent to Tom Newberry. I expect him to ignore it but it made me feel better. I didn't include the issue of how little it cost cutting it would have taken over the past two years to match the entire amount of the LFB "investment" in GTCB, and that would have preserved shareholder value.

Dear Tom,

As I watch my long time investment in GTCB being reduced to close to nothing, I am still stunned by the major failures of management. Everyone knew that cash reserves have been a major weakness for quite sometime and will remain such. I had high hope for the US partnership in rATIII but the Ovation deal was a great disappointment as it brought in only a minor amount of up front cash and near term milestones payable upon FDA approval. No real news has been available about rATIII sales in Europe, or lack thereof. No real explanations why rATIII sales in Europe have been non-existant or the plans to correct this have been provided.

What is truly stunning to me is that even at this late date, management has not made lowering cash burn a priority, or even given it any real lip service. Dr. Cox keeps stating his unhappiness or even anger at the low stock price, but fails to take concrete actions to combat it and preserve the small remaining shareholder value. Never once has top management, especially Dr. Cox, ever stated they would begin trimming costs by reducing their salaries. As a leader, that should have been done as an example of their seriousness. If they were too concerned about maintaining their financial rewards to accept a salary reduction, why haven't they accepted GTCB stock instead of some or all of their salaries? The latter would have provided a clear message of their faith in the future of GTCB. If I do not see such acknowlegements of the importnance of reducing cash burn and cash payments to executives, I will vote against the LFB deal and urge as many other shareholders to do the same.