Anybody know anything about this one that is starting to move?
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April 8, 1999
MEDITECH PHARMACEUTICALS INC (MTCH)
Quarterly Report (SEC form 10-Q)
- MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DEVELOPMENT-STAGE ACTIVITIES
THE COMPANY IS IN THE DEVELOPMENT STAGE AND ACCORDINGLY HAS HAD NO
SIGNIFICANT REVENUES. ITS PRINCIPAL DEVELOPMENT ACTIVITIES FROM MAY 4, 1982
(INCEPTION) THROUGH NOV 30, 1998, HAVE BEEN EFFORTS TO SECURE FINANCING, CREATE
A MANAGEMENT AND BUSINESS STRUCTURE, AND DEVELOP AND TEST VIRAPLEX (R) AND
MTCH-24 (TM).
AS OF FEB. 28, 1999, APPROXIMATELY $12,115,200 HAD BEEN EXPENDED BY THE
COMPANY IN CARRYING OUT ACTIVITIES RELATING TO THE DEVELOPMENT AND TESTING OF
VIRAPLEX(4) AND MTCH-24(TM). THIS TOTAL INCLUDES $1,347,800 FOR CLINICAL TRIALS,
$489,300 FOR RESEARCH AND DEVELOPMENT, $5,041,200 FOR COMPENSATION, $1,307,100
FOR PROFESSIONAL FEES, AND $3,929,800 FOR GENERAL AND ADMINISTRAIVE EXPENSES,
INCLUDING FEES TO CONSULTANTS.
LIQUIDITY AND CAPITAL RESOURCES
-
INITIALLY THE COMPANY FUNDED ITS ACTIVITIES THROUGH A NOTE PAYABLE TO A
BANK, ADVANCES FROM PRINCIPAL SHAREHOLDERS AND SUBORDINATED DEBT. IN EARLY 1983,
A PRIVATE OFFERING WAS UNDERTAKEN YIELDING NET PROCEEDS OF $531,400. SINCE THAT
TIME THE COMPANY HAS FINANCED ITS DEVELOPMENT ACTIVITIES FROM THE $3,413,000 NET
PROCEEDS OF ITS JULY 11, 1983 PUBLIC OFFERING, LOANS, SALE OF ITS COMMON STOCK,
ROYALTY PAYMENTS AND ADVANCES FROM PETRO-MED INC.
THE COMPANY NEEDS ADDITIONAL FUNDING TO CONTINUE ITS DEVELOPMENT STAGE
ACTIVITIES. MANAGEMENT ESTIMATES THAT THE COMPANY WILL NEED APPROXIMATELY
$2,000,000 IN ORDER TO CONTINUE ITS EVALUATIONS OF VIRAPLEX (R) AND MTCH-24
(TM). WITHOUT THIS ADDITIONAL FUNDING, IT IS UNCERTAIN WHETHER THE COMPANY MAY
CONTINUE AS A GOING CONCERN. MANAGEMENT LACKS SUFFICIENT INFORMATION AT THIS
TIME TO DETERMINE THE EFFECT, IF ANY, OF LEGAL ACTION BY SERGEI GIVOTOVSKY
AGAINST THE COMPANY, PETRO-MED INC. AND GERALD N. KERN. NO ACTION HAS BEEN TAKEN
BY ANY PARTY IN THAT MATTER FOR OVER THREE YEARS.
UPON COMPLETION OF ITS DEVELOPMENT ACTIVITIES AND REFINANCING, IF ANY, THE
COMPANY PLANS TO CONTRACT WITH ONE OR MORE PHARMACEUTICAL COMPANIES TO
MANUFACTURE AND DISTRIBUTE VIRAPLEX (R) AND MTCH-24 (TM). UNDER THIS
ARRANGEMENT, THE COMPANY DOES NOT EXPECT TO INCUR SIGNIFICANT MANUFACTURING OR
DISTRIBUTION COSTS AND, ACCORDINGLY, DOES NOT ANTICIPATE THE NEED FOR ADDITIONAL
FINANCING TO FUND THE MANUFACTURING AND MARKETING OF ITS PRODUCTS.
INFLATION
THE COMPANY HAS NO EXPERIENCE WITH RESPECT TO THE EFFECT OF INFLATION ON
ITS BUSINESS. HOWEVER, THE PHARMACEUTICAL INDUSTRY IS WELL DEVELOPED AND, BASED
ON MANAGEMENT'S UNDERSTANDING OF INDUSTRY EXPERIENCE, IT BELIEVES THAT INFLATION
WILL NOT HAVE A SIGNIFICANT IMPACT ON THE RESULTS OF THE COMPANY'S OPERATIONS IN
THE FUTURE.
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