To all:
For informational purposes only:
Let us preface this report with some comments. It has been posted that >>Joe Scotti made a recent visit to the lab in Yonkers, why did he not post that information as soon as the visit was complete>>? It is often stated that anyone can post on this thread and can say anything he wants to say. By the same token anyone can decide not to post on this thread and not say anything they don't want to say. If we do not want to post, and it was our joint decision not to post, we had all the right in the world not to post.
It was decided not to post in June primarily because there was nothing found out that was not already known from other information already posted by other individuals or put out under ADVR news releases or Dr. Hirschman's letters to shareholders. There was no new startling information revealed by
the visit. Only our impressions concerning the facility and Dr. Hirschman could be posted and that is like posting meaningless opinions, rumors or speculations. So we decided in June not to post!
However, as discussions have heat up on the Thread and the word eventually got around that a trip was made to the ADVR Yonkers office by Joe and Sal it has become evident that some Posters would like to know about the trip and what was found out. Therefore, we have put together this report about
our trip to ADVR Yonkers during the second week of June 1997.
The ADVR Yonkers, NY office and laboratory facilities are located in an area of New York State where other small and large Bio Tech firms are situated. ADVR is located in an office building compound, known as Executive Park, at 200 Corporate Boulevard South - with an "Advanced Viral
Research" sign on the compound's entrance board and on the door to the office. The facility is for real. Executive Park is off Executive Boulevard which crossed the Saw Mill River Parkway at Exit #9. The Saw Mill heads North/South paralleling the Hudson River. The ADVR offices are situated at the top of a decent size hill to the west of the Saw Mill in the vicinity of the most predominate land mark for the area, i.e., a huge white city-water tank with "YONKERS" painted on it. This water tank is immediately visible as you turn off Exit #9 and head to the west.
ADVR has leased 6100 sq. ft. of a relatively modern type executive office building. It appeared to us that the facility does not require too extensive a renovation except for the plumbing and fixtures required for the seven (7) enclosed laboratory spaces. He is presently getting significant help from the Yonkers Chamber of Commerce. Dr. Hirschman feels he could house up to 30 scientists and technicians in the laboratory/office space. Also, he feels that he has room for fifteen (15) administrative type professionals. There are plans for a moderate size [150 sg. ft.] library and a 10-to-20 person conference room.
The scientific work that Dr. Hirschman wants to conduct is to be at a very high level. He wants to take the high road in hiring key persons and in even selecting the type of furniture he buys. He feels that if the scientific work that is to be undertaken is of the highest caliper, everything else will fall into place. Also, he said that the surroundings must be conducive to the encouragement of a scientific atmosphere and that acknowledgement and reward for outstanding work will help to build and maintain an excellent staff and working space well into the future.
The laboratory staff will be composed of 3-teams of scientists, each with a team leader conducting scientific investigations in the disciplines of Molecular Biology, Immunology and Virology, and Structural Chemistry.
He seems to fully realize that his presently attained position at the forefront of Molecular Biology [Virology/Immunology] can only be maintained with outstanding research. He feels that he has to beat other Bio Tech organizations to the punch. He feels confident that he can do this since his understanding of the technology [which most others cannot understand] is based on the uniqueness of his research and findings. He seemed to fully recognize what it will take to develop products stemming from his understanding of the present level of the technology. Thus, this knowledge will be applied in the development of new products that are to be derived from the present scientific understanding of the composition of Reticulose and how it works.
Dr. Hirschman indicated that the technology required to analyse and understand how Reticulose works has only been available over the past 5-years. The originator of Reticulose [Dr. LaPenta] could not have know what he had created because the technology was not available to fully analyze and understand the workings of the drug.
Dr. Hirschman implied that the major progress that must be made, with great haste, is (a) FDA approval for dispensing Reticulose along with conducting controlled human testing and (b) full staffing of the laboratory. He feels the location of the facilities close to Wall Street will be beneficial to
him for money purposes. He indicated to us that he is well aware of the politics involved in bringing new drugs to market.
Dr. Hirschman acknowledged that he carries the former reputation of ADVR along with him in any business venture that he undertakes. Selling the fact that ADVR is an altogether different company that is being built on sound scientific and financial principles is a job he must be successful
at. He seemed to indicate that it is presently difficult to enter into a joint venture and it will continue to be difficult to do so until he changes the face of ADVR. Thus, a joint marketing venture in the future is
not out of the question.
He further stated that there are some 15,000 shareholders of ADVR and that it cost $30,000 to put out the first stockholders letter. All future communications with the shareholders will be through news releases - where there are many in the cue.
He indicated to us that he is truly interested in having the support of the shareholders. He implied that a lot of his friends and family invested in ADVR when he took over, not on his advise but simply that they have a lot of faith in him and that they realized that there must be a sound reason for him to have made the move from Mount Sinai to head up a small Bio. Tech firm like ADVR. Thus, he shares the immediate family/friends concern and interest as to the price of the stock.
To us, Dr, Hirschman seems to command [not demand] our fullest cooperation and respect. He appears to be a great motivator simply on the basis of the sincerity in the way he talks about his interests and plans, and in the way he expresses the importance of the work he is doing.
A few interesting things caught our attention during the 45-minute audience. Dr. Hirschman's office contained only an old desk where his files were on the floor in boxes. There were two slightly uncomfortable visitor chairs that we sat in. During our conversation he received a telephone call, from most likely a broker, wanting to know when the Barbados report would be out. We heard him say "I can't tell you that, that's insider information". We did not talk about such things as stock splits and market maker shorting. He told us of problems he was having with the working situation at NCI. Investigations were being interrupted because of a key team member getting very ill and because of the necessity to evacuate the NCI building for four or five days in a row because of Bomb scares. In addition, when we pulled up to the front door we noticed a 5-to-10 year old Jag with NY Doctor plates, not a new leased car. This is not to say that he does not have a newly leased car, but it was just kind
of funny to see the old Jag.
In summary, this trip was about 9 weeks ago. We have also been concerned with the fact no news from the company has come out since our trip. Two weeks ago, we placed a conference call with Dr. Hirschman to obtain an update on the construction and was told "it will soon be completed". We also indicated to Dr. Hirschman that we would like to come back down in October and he extended an invitation to do that.
Joe Scotti and Sal Santaniello |
