Trial and error It has been rather painful at times watching the errors made by management. You can expect trial and error in the TFC lab in France, but not repeatedly from management.
The Attila period has been mentioned, Howard tried to get a deal for 1067 without proper clinical trial results. This reveals a lack of industry and business understanding from the CEO/Chairman which is indeed alarming. If the R+F deal was an error or not remains to be seen, to my understanding, the terms were not financially favorable.
Not long ago, management stated that resources were allocated to the development of antivirals. To my understanding, the time to market, and to a steady income for the company, is much shorter for cosmetic compounds such as 1067 and anti-wrinkle. Why then start a new R&D activity for antivirals? Why not focus on the essentials that can create revenue relatively swift for the company? Is there not an established business plan for the company that needs to be followed? How can a new business line for antivirals be established ad hoc just like that? To my understanding, antivirals is not the focus area for the company. Waist of time and resources. Howard must understand that the shareholders would like the company to focus on the essentials and to be financially successful for once. We are bored and tired after years without proper development and would like to see a steady revenue stream and a fair valuation of the company.
Howard is granting himself bonuses, which is indeed offensive. An adequate segration should be established between board and management people in order to avoid conflict of interests. It must not be that the people granting bonuses are also the recipients. Furthermore, as been stated earlier, establishing deals for the company should not trigger bonuses, levels of revenue and profit should. Objective criteria for granting bonuses should be stated in a company policy document. Closing deals is business as usual for management, it is what we expect of them, their everyday responsibility, no need to grant bonuses because of that. When we start to see significant revenue streams for the company, and the valuation of the company starts moving north due to that, then I would be happy to grant management bonuses.
I look forward to a 0,4% 1067 deal. I certainly hope for favorable terms this time and not yet another management error with alarming terms. In other organisations, management people are replaced if they do not perform and live up to stakeholder expectations.