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TELESTA THERAPEUTICS INC T.TST

"Telesta Therapeutics Inc is a biopharmaceutical company. The Company is engaged in the research, development, manufacturing and commercialization of human health products and technologies."


TSX:TST - Post by User

Comment by RetailRubeon Jan 16, 2015 10:41am
186 Views
Post# 23327591

RE:Partner

RE:PartnerSome people on this bulletin board seem to think that Endo dumped Bioniche as a partner.  But evidence says you are incorrect.

First, the partnership agreement with Endo (posted to sedar.com) contained clauses on what process to follow to change the agreed marketing plan.  There were to be various meetings of a committee with members from both companies.  In the event they could not agree, there was to be escalation to the CEOs of Endo and Bioniche.  A very formal process.  But the agreement was silent on what to do it they had to change the clinical trial protocol.  Therefore, they were forced to renegotiate the whole partnership agreement to re-set the clinical trial protocol.  But Bioniche was under no obligation to agree to a new deal without a sweetener.  So they spent a few months discussing it.  Finally, they agreed to part ways in return for Endo receiving a 5% royalty on all future revenue.  The 5% does not sound like someone who was trying to walk away.

Second, the Bioniche Chairman, Mr. Rae, said at the AGM in 2013 that "We got it back.  It was a bit of a fight, but we got it back."

Therefore, I assume Endo still wants to participate but we forced them out.

I am guessing the relationship between the two CEOs was not that good during the clinical trial.  Remember, Endo exercised the global rights in February that year, instead of in July which was the deadline for them to decide.  I suspect that was to enable Endo to exclude Mr. McRae from the meetings.  The cost to Endo was to pay for 100% of global clinical trial costs.

I think all key players from the Endo/Bioniche partnership have left their respective businesses now.  Mr. McRae is retired.  The Endo CEO has left Endo.  As well, I recall that the Endo project executive has also left Endo.

So the new Endo team and the new TST team have a chance to start fresh.  If the money is right, I think Endo would make a great partner.  They are already a partner for Canada, Mexico and South Africa through their purchase of Palladin.


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