PolyMedix, Inc.(fka PYMXQ)

[damnthetorpedoes]

13D posted by Target Capital Management, LLC mirrors PolyMedix Shareholder Group Assessment?

This is an interesting read: http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001029574%2D12%2D000024%2Etxt&FilePath=%5C2012%5C11%5C20%5C&CoName=POLYMEDIX%2C+INC&FormType=SC+13D%2FA&RcvdDate=11%2F20%2F2012&pdf=



"Underperformance and Dilution

The underperformance of the Issuer's Common Shares over the past several years speaks for itself. In any comparison of the performance of the Common Shares of PolyMedix to either a composite of biotech stocks or a stock exchange composite would show large underperformance by the PolyMedix Common Shares compared to biotech stocks or the general market (see the five- year total return comparison set forth in the Issuer's Form 10- K for the fiscal year ended December 31, 2011). In 2012, the per share price further declined and plummeted to 6.666 cents per share on November 14, 2012.

Dilution of Common Shares has contributed to this underperformance. The number of outstanding Common Shares have almost doubled over the past three years. Given the Issuer's future cash needs, if cash is raised through issuance of more Common Shares based on the current depressed market price, the dilutive impact will further decrease shareholder value.

The Board Needs More Credibility with Shareholders and Investors.

Credibility has been an issue for several years. In Stephen A. Springer's April 27, 2009 letter to the Board of Directors, he stated:

"The Company's success is dependant on achieving credibility in the marketplace.. Inconsistent positions as to the Company's capital needs also undermine that credibility.

If the Company loses credibility and the marketplace perceives that there will be disruptions in the Company's achieving its business goals, the situation will create a "field day" for short sellers of the Company's stock. A depressed market for the Company's stock impairs the Company's ability to raise additional capital at a reasonable cost and greatly dilutes the holdings of current shareholders."

The Reporting Person believes that what was true in 2009 is still true in 2012. For example, on April 23, 2012, when the Issuer issued a Press Release announcing "Positive Results" from its Phase 2 Clinical Trial with PMX-30063, the stock price went in the opposite direction and declined from a per share price of approximately $1.25 to a per share price of approximately $.67 on April 24, 2012.

Board and Management Should Be Aligned with the Shareholders.

The Reporting Person believes that the Issuer's Board and management should be aligned with the best interests of the Shareholders, both in ownership and in their actions. According to the 2012 Proxy Statement, the total number of Common Shares currently owned by all Directors and Executive Officers as a Group (does not include options or warrants which have not been exercised) is 3,876,700 Common Shares out of 106,305,860 Common Shares outstanding. The combined ownership of Common Shares by all twelve directors and Executive Officers totals only 3.6%, and the only significant ownership of Common Shares by the directors and executive officers is held by Frank P. Slattery, Jr., the Issuer's Chairman of the Board (1,850,100 Common Shares are held by Mr. Slattery).

The lack of communications by the Board and management with shareholders and investors has reinforced the perception that the Board and management are not aligned with the shareholders. The quarterly conference calls with shareholders and investors have been discontinued. At the May 1, 2012 annual meeting, frustration was expressed by shareholders that the Board and management would not disclose their strategy and refused to discuss the status of its heparin reversal agent (one of the Company's two products in development). Less than ten days later, development of the heparin reversal agent was discontinued.

In July, 2012, the Chairman of the Board told the Reporting Person that, since there is a lawsuit against the Company, the Issuer's counsel has advised the Board to have no short term discussions with Shareholders - even though the Reporting Person has no connection to that lawsuit.

Plans and Proposals.

For the foregoing reasons, the Reporting Person believes that it is important that the Board takes steps to align itself with the interests of the Shareholders. The Reporting Person believes that open communications by the Board with the Reporting Person and other Shareholders is crucial to addressing the current difficulties facing the Issuer.

It is proposed that the Reporting Person communicate directly with Frank P. Slattery, Jr. The Reporting Person would like to reestablish a constructive relationship with Mr. Slattery and the Board. Not only is Mr. Slattery the Issuer's Chairman of the Board, but Mr. Slattery is the only director or executive officer who has significant ownership of Common Shares.

The Reporting Person has no set agenda for his communications with Mr. Slattery. Communications could cover issues such as the potential sale of PolyMedix (either an asset sale or a stock sale); a potential partnership with another biotech company in the development of its products; the need to prevent options from being issued at the current depressed price which would cause further dilution of the Common Shares; greater representation of shareholder interests on the Issuer's Board of Directors; or other matters of interest to the shareholders. It is intended that this communication be constructive and further the best interests of the shareholders."

I couldn't have said it better...