RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:DILUTION OF ZENITH SHARES OF PRESENT HOLDERS???Yes G1945 they thought ahead to what I believe was a possible deal if assure succeeded as they obviously believed it would.
Remember they had only done animal trials before to see efficacy and they did not bother with IVUS nor lipitor or crestor since they could simply kill the mouse and see what the effect on their plaque in the arteries etc was.
Prior to assure no efficacy had been done on humans since you cannot sacrifice a human being. and also assure needed to maintain standard of care drugs such as Lipitor or Crestor to avoid deaths due to cessation of standard of care.
I believe they had a possible deal if assure worked at a price which they and a big Pharma were agreed upon in general terms with a big part of the price pushed into the future by the royalty mechanism.
unfortunately Lipitor was the spoiler with its negative effects and we are now going in a new direction where we as RVX will do a large part of the bringing to market work and as RVX the payout of more money to Zenith than will be paid by licensees would not be fair to RVX only shareholders and so the special royalty payments to zenith must be modified to not be more than the net effect of RVX royalty received from 3rd party licensees.
you could say the management did not think ahead but I do not fault them as much as others do since I also believed Assure would be a success and they are now changing the deal to be fair to both shareholders of Zenith and RVX in their separate interests.
Of course setting up Assure to handle the unknown unknown of the Lipitor contraindication would have been best but a true reliable and accurate fortune teller was not available, and they had to decide how to set up the test and failed to foresee the problem.