RE:RE:RE:RE:RE:RE:AGM CEO Presentation....In my opinion the reason the SP is where it is because of the previous management. Previous management almost bankrupted the company several times over the last 10 years. Animal health was a solid business with many products that were sold at high margins but they wasted all the proceeds on too much upper level management. How many VP's did they have with only 200 employees? There was never any concern over their burn rate which they promised to reduce but never did . If fact many times they increased their monthly burn rate. They listed on the Australian exchange which never traded any shares and did nothing but cost them money. They released company update that they posted only on the Australian exchange. They sucked at growing the Animal health business. They continued to come out with new products but could never seem to capitalize on them. The revenue for Animal Health was stagnent or negative over the last 10 years.
On their conference calls they always talked about new products that were going to be great but they never gave any indication of what type of market there was for these new products. There were nerver any goals that were set in terms of market penetration or growth. It was almost like they developed a product first without determining what the market was for the product.
They never met their timelines for product launches once. They used to have conference calls which analyst would attend and ask questions and Graeme would respond with vague off the cuff answers. He would throw out dates of when products would be released. There were always many, many "good things in the works" that he could not disclose at this time. Nothing ever materialized or if it did it was never as great as what we were led to believe. Analysts will only will only be made a fool of for so long before they will and did drop their coverage.
As far as Econiche and the VMC I think the goverment screwed them, plain and simple. About 2 years ago I heard from someone that talked directly with someone high up in the company that the federal goverment was going to mandate and provide funding for the Econiche vaccine. Either this was not true or the federal government caved to the beef producers in Alberta. Either way Bioniche was screwed and now are stuck with a 60 million dollar anchor.
In my opinion Bioniche was also screwed by ENDO who changed the format of the phase IIIb trial ultimately making the trial doomed from the start
It is going to take a while to gain back the trust of investors and analyst but I think new management is on their way to doing that. They have streamlined operations, reduced debt, reduced the burn rate, met timelines and so far have done what they said they are going to do. They have a clear well thought out plan of action to get MCNA to the approval stage and beyond and the are working on rebranding with a new name and new website. They are also focused on raising awareness in the investor community.
This does not happen over night but as these changes start to happen we should start to see the SP increase.
All in my opinion,
Tson99