Read it and weep Professor Nutley and other shorts/pumpers-
"Since the FDA requires both efficacy and safety data and it should be clear we would need to repeat Phase III efficacy trials which as you rightly point out will cost approximately $35 million there was little positive reaction to the safety data reported to date."
So Simes himself is saying that Libigel comes with a $35 million price tag to bring to market. Value taken directly out of share holders' pockets...
"For clarity, BioSante stockholders will get 66 percent of any and all income due to LibiGel up to $40 million. However, please remember that after the merger BioSante stockholders will own approximately 47 percent of the merged company. Therefore in addition to the 66 percent split, BioSante stockholders will be the beneficiaries of 47 percent of the remaining 34 percent. In summary, in reality BioSante stockholders will receive the benefit of approximately 82 percent of the initial LibiGel income. After the $40 million is reached, BioSante stockholders will still participate on approximately 47 percent of any further income."
For clarity, this means that we are CAPPED at 40 million for any sale of Libigel properties. To achieve that, we have to get about 60 million outright. THEN, we get 47% of anything beyond that. Only IF ANI develops Libigel. So if they sell it, we get 66% of whatever the sale price is- but only up to 40 million, then NOTHING. Or if someone buys the Libigel package for 200 million. Guess how much we get? Do the math.
Happily the safety data to date suggest the LibiGel is safe for women in the doses used in the safety study. However our board determined that the merger with ANI was a lower risk alternative for our stockholders to realize value in the near-term than funding new LibiGel efficacy trials at this time especially given the depressed value of our stock due to the announcement of the efficacy data back in December 2011.
Translation: We thought giving away all our cash and cutting share holders out of THAT value by 50% plus reverse splitting them, then capping their possible Libigel value in hopes of a quick sale was the best choice. Obviously, BPAX does not believe that they could have brought Libigel to market with approval before dying on the vine.
I said all this before. Months ago. Now people are starting to get the picture except you. What is your agenda?
PS Thank you Jeff for posting these Simes responses.
AI
