Nuvo Pharmaceuticals Inc NRIFF

RE: Re potential acquisition

[Landro]

To Horla, Black and other neutral or pro-management posters:

Here are the main issues I have with management (it would be appreciated if you could comment each of them as I am interested the different opinions...whenever I made such posts in the past they were simply brushed aside by the pro-management without any discussion on the specifics):

1- It took them more than 4 years to get FDA approval for a product that was already approved in Canada and some European countries when they took over...probably due to the learning curve involved in switching from car parts to biotechnology);

2-Meanwhile, they compensate themselves at levels that are completely unacceptable for a non-profitable company of this size that survives solely trough constant capital infusion (never-ending dilution) . This compensation is so high that I estimate that it alone is responsible for about 1/3 of the dilution we suffered since 2005. Furthermore, this compensation is completely unjustified considering the huge negative returns the longs had to endure since the pep boys took over;

3-They have a corporate structure that completely negates organizational management best practices: two CEOs, no PR professional  (the external IR guy, Peeler, sounds more like a receptionist) and, as some pointed out on this board, dubious location for US offices (Galer's estate...I am sure it helps with his IRS returns);

4-Covidien was clearly not ready to market this on approval...they had to hire a sales force and it took them 6 months from approval to launch...this 6 months is lost forever...;

5-Complete lack of transparency with regards to the Covidien deal...we do not know the exact percentage of royalties for ongoing sales as well as the milestone payements detailed conditions. At the AGM. management did not give an update on the production increase of the Varenne plant to meet the demand from the US launch. The argument according to which this would be to protect secrecy is moot since IMS sells most of the Rx data from doctors across North America on a monthly basis...Pennsaid numbers will be included in this data feed eventually. It seems like any bit of information that could contribute to the an increase in share value is kept secret...why?;

6-Chicoine self-congratulates himself at the AGM with SP performance by taking the absolute low of 2008-09 to measure the performance...what a joke...  (BTW, this stock is down  about 30% from the AGM level);

7-On a more subjective note, Galer's recent disposition of NRI stock is clearly not a vote of confidence in the future prospects of this company;

8-Their desire to acquire a late stage drug candidate is quite questionable at this stage as it will bring additional approval-related uncertainty...I believe that this uncertainty will completely mitigate any enriched-pipeline related valuation because history shows that the market REFUSES to factor-in future prospect in the case of NRI (probably in part because of less- then-stellar record of Chicoine & Co.) .

9-As pointed out by Black, our management team are clearly not stock promoters...well I strongly believe that it is part of their job as long as said promotion is based on facts...considering the aggregate amount WE pay this team, we should expect a certain level of competency in promoting the company and its product.

10-In the 5 years since they took over, we have seen shareholders being continually diluted and the value of their investment evaporated to the benefit of this management team (trough high pay and an endless stream of stock options). THEY HAVE NOT DELIVERED IN THE LAST 5 YEARS! So my question to the pro-management is this: What would be an acceptable extra period to judge the management performance from this point on: 1 year? 5 years? 10 maybe?

I strongly suspect that the management defenders are not long on this stock ...am I right?

Cheers anyway...