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Biotech / Medical : dsco Discovery Laboratories -- Ignore unavailable to you. Want to Upgrade?

To: fred hayes who wrote (296)	9/17/2012 5:20:37 PM
From: Arthur Radley	Read Replies (1) \| Respond to of 318

The following points are strictly my opinion, but based on attending the meeting and talking with executives. 1) Company execs are enthused about the product and think they have a game changer as for current and future applications for their drug and delivery system. 2) 20 member sales team is in place and currently being taken through training program. 3) One unique aspect of the meeting was that prior to starting a lady approached Mr. Amick and asked if he knew who she was. He admitted that he didn't recognize her. Turns out she was the co-discoverer of Surfaxin. Amick graciously recognized her to the attendees at the start of the meeting.(Nice touch) 4) For those who think that the stock is going to 'sky-rocket-to-the-moon'--think again! We investors are in for a long slog. The market they are going to initially compete for is only worth $75M. 5) Based on Abbott's drug cost, DSCO is going to take an approach that is in my opinion, fraught with some strong head winds. They are going to approach hospitals with the premise that they deserve a premium price because of the usual--safer because non-animal based product. The new approach will be based on efficacy and safety due to issue of re-intubation of fragile patients.(This issue is real, however, hospitals are currently operating on tight budget constraints.) Sales force knowledge of product and issues will be critical. Holding off launch and training to this point has been a good approach. In private conversation I conveyed to Tom Miller, that DSCO has done an excellent job in pre-marketing campaign. There will be some off-lable uses, due to these efforts.(IMO) 6) My main issue is the fact that they are only looking for partnership deals with foreign entities. My issue and I openly broached it with them is that time is of the essence. Delaying Phase testing for expanded indications for this drug is critical--relying on revenue from $75million dollar market isn't going to give them the money they need. Delaying until late 2013 for new trials.........bad decision, IMO. 7)They listened to my concerns and gave a robust rebuttal. Time will tell! But with the history, DSCO needs a solid game plan with no missteps. I enjoyed my private conversation with Tom Miller--a bright young man and very passionate in his beliefs about the company. 8) They need female representation in the executive ranks of the company. I suggest one hold their position in the stock, we might and should get a small bounce from launch. But head winds are going to be blowing until we get expanded indications for the product. Sentiment: Hold