RE: what the ....!!!Good question bioboy. I have a pov, but I am total shocked that the most important business event in PRX's history has attracted but two comments - yours and mine!
Here is an expansion of my thoughts...maybe this will get a ball rolling...any ball!
First, the bigest drag on PRX recent share price has been the question, "How are you going to finance Phase 3 in the event that an acceptable co-development deal cannot be secured?". That question has now been answered. Removing the uncertainty alone will be a positive. It has appeared for some time that the SP reflected that a financing would be in the thirty to thirty-five cent range, so the WP deal at forty cents is also positive. The fact that it is not a piecemeal financing gives PRX certainty in developing a comprehensive and co-ordinated plan to move PRX302 to market - this is a big positive.
Second, the due diligence that led to a $35 million investment commitment would have to be detailed and rigorous. The fact that PRX cleared that bar speaks to the strength of its clinical program. Listening to yesterday's CC, I was heartened to hear Dr. Merchant say that they will continue to build on the existing clinical direction for Phase 3, but may add some work on alternative medication delivery.
Third, WP adds muscle to the BoD. Their track record is as an active investor. More competent bodies on the file will help - assuming that egos and agends are aligned. Fow now we must assume that they are in alignment (I have no reason to believe that they won't be aligned as we go forward). Dr. Merchant's status is unclear.
The likely exit strategy is also clearer to me: company buy out.
We will need 18 - 24 month of patience, but I expect the SP to move upward with positive news - news that has been discussed/mentioned on the board: IND submission, 24-month Phase 2a open label results and 12-month Phase 2b results. My take from teh CC is that the Phase 2a and 2b results will be available in November or December - presumably after the 11-24-10 shareholder meeting to approve the financing.
OK folks...more comment appreciated. Contrarians and supporters welcome.