Greg,
<<Let us hope Mark is right about some positive announcements in 6-10 weeks. That was quite a drop today.>>
Well .... IMHO what you had there Greg, were momentum players leaving the stock temporarily .... rest assured they will be back. Frankly, I think the stock acted very nicely today .... it is still well above its 50 day SMA ...... there were a lot of buyers.
Summary - Dimethaid AGM
As promised here is a brief summary of the September 30, 1997 AGM meeting of Dimethaid.
If there were any other people that attended the AGM - please feel free to correct any errors\omissions.
As indicated in my previous post, there was no "big news" announcement. That being said, I remain very bullish about the prospects of the company.
Summary of Capitalization - 40 million shares out; 44 million FD
Cash on Hand - Slightly over 9 million dollars
One item of new business worth reporting that may affect the number of outstanding shares, is the request and its subsequent approval, for the right to issue an additional 18 million shares through a private placement. The TSE requires that whenever a company wants the right to issue more than 25% of the stock as a PP, it must get approval by the shareholders. Now - Rebecca made it clear that there is _no need at the present time for a private placement. The monies for the phase III WF10 AIDS trials and the phase II cancer trials are already available. She indicated the reason this request was being made was because _should the company require additional capital quickly, they would have to otherwise hold _another special shareholders meeting to vote upon it. I suspect that they may be considering some sort of capital acquisition and they want the flexibility to move fast if need be. In addition, they are exploring a NASDAQ listing and may need some capital for that purpose.
Company Structure - for operational purposes, the company now basically has 2 boards. The first consists of members whose primary responsibility is the "business" of the company. The second board consists of members whose primary responsibility is the "science" of the company. This later board is not to be confused with the recent PR about the medical advisory board (that so far has 2 doctors appointed which specialize in pain management) ... they are not the same.
Pennsaid - Drug Development Update
- Market for NSAIDS in Canada - 340 Million
- Market for NSAIDS in U.S. - 3.4 Billion
- 40 million suffering from arthritis in North America
- Presently 450 doctors in Canada prescribing Pennsaid to 2000 patients - no serious side effects reported to date.
- Submission to UK for approval has been completed - feedback has been received from the UK
- Additional tests were requested by the FDA prior to submission - they have been completed.
- FDA submission for approval is likely going to happen within the next few weeks.
- UK approval for Pennsaid means that other member states would likely review and approve within 60-90 days.
- Patent protection for Pennsaid delivery system runs out in 2006.
- In negotiations with a major for the distribution of Pennsaid outside Canada - hopefully will be finalized within 12 weeks.
- other areas\medications that will be evaluated for combing with delivery molecule are for the treatment of Herpes, surgical wound healing, and anti-fungal drugs.
- marketing materials are presently being developed for Pennsaid
- media groups have been contacted for Pennsaid
- focus groups have been formed for Pennsaid
WF10 - Drug Development Update
Phase IIb trials have been completed. The research group is presently analyzing the data. This will hopefully be completed within about 3-6 weeks. Dimethaid has decided, rather than the company releasing the data, they are allowing the research group first crack at publishing the outcome in a peer reviewed journal. It is their belief this will lend much more credibility to the data, than if the company were to release it. Personally I think this is an _excellent strategy .... a way to "bullet proof" the data, as was stated. In case you were wondering - worthwhile peer reviewed journals do not usually want to publish data that has already been made public .... hence the research teams first crack at publishing.
The protocols for the phase III AIDS trials and the phase II cancer trials are nearing completion. The phase III AIDS trials will be conducted in more than one facility. As was mentioned, funding for these 2 trials is already secured.
The patent runs out on WF10 in 2013.
Personal Comments\ Summary
I am still bullish on this company - in fact I bought more today. For most of us it does not seem like things are happening fast enough - and I feel the same way. That being said, I do have a strong sense that the smallest details are being addressed closely and thoroughly - for me that is important - and of course, that takes time.
Significant Upcoming Events
- the approval of Pennsaid in Canada ...... IMO will move share price to 6.50-7.50 range. I hope this will happen within 6-10 weeks or so.
- publishing of positive outcome for phase IIb WF10 study ........ this will be a _very significant milestone - I have no idea how the market will valuate this ..... but the "market" will take notice. I hope this will happen in 8-16 weeks ...... I am not sure how long it would take to have a peer reviewed journal publish the results .... if they are positive, I would hope not too long.
- approval for Pennsaid in US ...... I am not sure about this one - but I would hope if it is going to happen, it would be within 1 year. I must check this with DMX - please do not quote me here.
- approval for WF10 in Canada\US ..... I would hope within 6-9 months.
I hope this summary is helpful. Should you have any questions, please contact DMX at 1 905 415- 1446 EST. They are located in Markham Ontario, Canada.
All the best,
MB
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