Replies to post #8789 on Pluristem Therapeutics Inc (PSTI)

[EichKing]

You are right Scott. Further, I don't think Grants get paid out up front. They get paid as they are used, I believe like an offset to the cost they are meant to go toward. Irregardless, thy lose more than $25 mm per year now....the SG&A is not going to go down, it is likely going to increase. The clinicals will cost them as well.....there will be more dilution....and soon. BTW, who is to say ANYTHING will ever get approved or commercialized? There are tons of revolutionary options out there like immunotherapy, gene manipulation, advances in traditional therapy, etc.....stem cell therapy is still looked at as quackery for the most part and has just started to show promise....the PP's on here treat it like it is a done deal....and that is far far far from the truth.

[Spideyboy]

Hi Scott,

At the moment I'm with Kronberg on this.

So I had a look over the press releases, and in example of the 2016 Horizon grant for the CLI Phase III, they do mention:

"The Phase III study of PLX-PAD in CLI will be a collaborative project
carried out by an international consortium led by the Berlin-Brandenburg Center for Regenerative Therapies (BCRT) under the leadership of Prof. Hans-Dieter Volk and Prof. Petra Reinke together with Pluristem. "

From the Heck Fracture Grant press release they say:
"The Phase III trial of PLX-PAD cells in the treatment of femoral neck fracture will be a collaborative effort between Pluristem and an international consortium led by the Charité – Universitätsmedizin Berlin, under the leadership of Dr. Tobias Winkler, Principal Investigator at
the Berlin-Brandenburg Center for Regenerative Therapies, Julius Wolff Institute and Center for Musculoskeletal Surgery."

And for the nTrack grant, they say:
"Pluristem Therapeutics Inc. (NASDAQ: PSTI) (TASE: PSTI), a leading
developer of placenta-based cell therapy products, today announced that a $7.9 million (€6.8 million) non-dilutive grant from the European Union’s Horizon 2020 program has been awarded to nTRACK, a collaborative project carried out by an international consortium led by LEITAT"

In all of these they stipulate that the money is being spread amoung the actors as part of the collaboration.

So while I agree with you that this means they are not directly receiving all the cash into their coffers, in all of these releases they mention the work will be carried out by a collaborative project/collaboration with other relevant actors, e.g. clinical trial sites. Specifically for the CLI and Hip-Fracture, perhaps some of the money goes to PSTI, some goes to the University in Berlin and other actors, but as long as these are all actors that PSTI would normally have to pay, then this is still money that PSTI does not need to spend. Thus the end result is the same.

If a student has an annual fee to pay to his/her university of 40,000 USD, and then gets a grant for his/her studies for say 30,000 USD, then the student only needs to pay 10,000 for his/her studies.

While it's true the student isn't getting the 30,000 into his personal bank account, because the relevant actors in the university/accomodation etc are being paid their due via the scholarship the end result for the student is the same. He/she only needs to pay 10,000 USD.

Thus all these grants are money that PSTI does not need to pay itself to the actors. While the full sums aren't going directly into PSTI's coffers, isn't the end result the same?

If we relate this back to the already mentioned quarterly cash burn of 5.1 million, then we would need to understand the level of grant support PSTI was having during that cash-burn period. If the grant money comes in for activities after that quoted cash burn, then could their cash burn not be reduced by the fact that now they have these phase III grants that essentially cover most of their Phase III costs??


I will agree though that the nTrack is not specific to a cost that PSTI would necessarily have chosen to spend, as that is specifically for academic research into PLX-PAD cells. But hence why in my prior calculation is guestimated that maybe 2 million of that nTrack 7.9 million might go directly to PSTI regardless.

Hence, with the above premise, again the end result to my calculation would be the same??

Not attacking here. Just trying to work out the essential end value of these grants to PSTI and covering their costs.

[Kronberg]

Sorry Scott my question was about apples and your answer about oranges. I hope that the situation with this company I understand quite well.I hold shares ($1.23 average) for about 7 months and the half I sold at $2.06. Many years ago when Zami published articles on Seeking Alpha one very experienced man told me not to buy because these articles are a low-level entertainment and he was right. Today he gives 30% to Pluristem for success.