Replies to post #15282 on GTC Biotherapeutics (fka GTCB)

[jessellivermore]

Dear Vin,

You make some very good points. It certainly is hard as an outsider which we both are to see why they have not made some of the cash cutting moves you suggest. There could be some valid reason why they are not doing it. I can try to contact Cox and see if he will shed some light on the subject. I agree T Newberry's explanation is fairly opaque. Cox owes me a favor for alerting him to the AT-stroke research which is going on in Naples It. Whether he will respond is probably doubtful.

I did not hear Newberry mock this $90 Mil deal, but as far as I know they have not been offered $90 Mil up front for any of their products. So it is hard for me to understand what all this is about. When people are angry it is easy for them to misconstrue the words of people they are angry at. This goes under the heading of hearsay. Newberry is only an instrument of management. He must be careful at all times to say what managemnet tells him to say and no more or less.

Regardless of the fact many of your points are valid I still hope you will realise voting for the deal is our best chance,

regards JL

[DewDiligence]

A high proportion of GTC’s costs are fixed; for instance, about 50% of the employee salaries go into maintaining the pharm. Although there is some opportunity for cost cutting, the opportunity is less than it would be at a typical biotech company.

For the above reason, I do not fault management unduly for the company’s high cost structure; rather, I fault management for its failure to bring in a meaningful amount of cash during the 2.5 years since ATryn’s approval in Europe.