Sorry for the delay, here is my take:
Alcide was represented by John Richards, CFO, and Sharon Bajema, Investor Relations.
The highlights of their presentation:
Dairy Cows- Focused on increasing mkt share; in the US they have added new distributors, internationally they are entering new markets, and registering additional products with foreign governments.
Poultry- Testing in 2 chicken processing plants, targeting 50 plants by 2000 year end. They do not view "Preempt" as direct competition. The problem in the processing plants is cross-contamination. Preempt will reduce the incidence of salmonella, but not eliminate it or the other problem micro-organisms found in these plants. (My opinion is that Preempt will slow down the acceptance of Sanova, but the MEGA REG passed by the USDA will force the adoption of a product like Sanova).
Beef and Pork- In plant testing in to begin in 4/98. Novus has submitted a draft agreement to ALCD to cover the red meat and pork markets.
Fin fish, Shellfish and Shrimp- Testing started 12/96, expect to file FAP in 6/98.
Fruits and Vegetables- Testing started 6/97, expect to file FAP in 5/98
Pre-operative skin antiseptic- This is viewed as their number one new market opportunity. Completion of all testing and filing of complete response to FDA in 5/97. Final package design and stability testing to be completed by mid '98. 3M has the market leading product in this market. ALCD will price their product in parity with 3M. Packaging will be the most significant cost for this product. In '98 they will identify a technology/marketing partner and begin expanded human clinical trials. Full FDA approval of this product is still 3-5 years away. Market size $100 million.
Oral Rinse- Two studies completed in the U.K. Results show Alcide product to be at least equivalent to Chlorhexidine. IND filed in 4/97. Want to identify a technology/marketing partner and begin expanded human clinical trials in 1998. "A number potentials" are being evaluated now.
Richards said that the board has been discussing a stock split, but no decision has been made. Richards stated that the board is concerned about the bullish signaling that a stock split would give the market. I asked if we should then regard their inaction as bearish? He didn't respond to this, but stated that he couldn't argue against the need for a split.
I asked about their weak PR effort. He acknowledged that they needed to improve in this area, and that this issue is getting attention inside ALCD.
ALCD will let the lawsuit with the patent holders go to court. I think he said that the discovery phase had been completed, and they were now waiting on the judge to set a court date.
I also asked about the extended terms that they had given to their largest distributor, ABS Global, Inc. He stated that this was a temporary situation, and that ABS was now current at 30 days.
That's what I took away from the conference. I hope this helps everyone looking at ACLD. |
