Nuvo Pharmaceuticals Inc NRIFF

RE: We are dealing with bad management

[gofx]

Dude, having been involved in a failed startup (not in the pharma industry) I can assure you that many of the things management is saying are right on the money.  Propping up stock price when you are not cash positive is a very risky move -- the market can stay irrational longer than you can spend all your money.

So, some of the real questions are:

1) Will global Pennsaid royalties grow enough to help the company achieve at least a breakeven position?
2) Do you believe the new products from Zars complement the Nuvo product line?
3) Do you believe products in the pipeline will achieve market introduction in a reason timeframe?

Personally, I feel both for the investors and for management.  It's really hard to start a company, get around all the things that get thrown in your way, and keep everyone happy.  For example, I'd have no trouble believing that lobbyists for companies with competing pain drugs worked hard to have the FDA deny a "foreign competitor" entry into their market via Pennsaid approval.  It certainly is not a cut-and-dry process by any means.

Obviously, I'm penny-ante compared to some folks around here... but nobody likes to lose money.  It's hard to know what to do when your investment is eroded and you don't know if it will ever be coming back.  The thing I'll be watching for is to see what happens to the money in the bank.  If it starts to shrink a lot while sales are not rising then I'll start to get worried -- if the money runs out the music stops playing.

At the same time these guys are playing in the big leagues.  You have to give them some credit.  Getting drugs FDA approved and so forth is not small potatoes.  We aren't talking about a company that has put up a website to complement their virtual office. 

Keep your brain engaged and avoid group-think or you'll just end up letting your emotions dictate your actions.  Generally, that's a really bad move.