Nuvo Pharmaceuticals Inc NRIFF

RE:RE:May 11th AGM - King West Hotel 9 am

[consultant99]

The chart is part of the AGM circular that shareholders will be receiving shortly along with their proxies and voting instructions.

I suppose you would have to ask management as to why they include the chart. It provides a visual indicator of performance over a five-year period of the common shares against the S & P/TSX cumulative total return and the health care index; a sub-group of the S & P/TSX.

The message under the chart (page 18) ;
The trend shown by the above performance graph demonstrates an increase in cumulative shareholder return from 2011 to 2016.

When companies provide information to shareholders I think it is assumed that the information is correct. I felt the chart was misleading by overstating performance. Long-term shareholders would know this intuitively whereas new investors might not. Assuming my math is right, it makes you wonder how an error like this would not get picked up by management before the material was sent to the printers - particularly because the conclusion reached is totally opposite to reality.

I don't know what Samira brought to the table other than unfounded rumours that she represented a beachhead for an eventual takeover by GUD. Maybe there will be a buyout, maybe not but for now

Nuvo Research proceeded with the split and the combined enterprise value of the two companies has declined in value after more than a year.

Pharma's revenues, prodominately from the US, have flattened out and expenses have increased squeezing profitability. The market price seems to reflect this and not the potential growth from selling the ROW rights and future product supply.

The Russians have regulatory approval but no idea when they will begin selling and what value shareholders should assign to the deal.

The Indians have bought the rights and presumably need to file for regulatory approval. No idea when they will expect to get approval, how much they paid for the marketing rights, and what value shareholders should assign to the deal.

The marketing rights to many other jurisdictions where the FDA approval is sufficient to get regulatory approval have not been sold, no idea why not and what if any value shareholders might get from those rights (and when). Do they even have value - it has been three years since FDA approval of P2%.

Presumably a successful phase III trial will pave the way for the rights in the EU and Australia to be sold. It would have been nice to have a little more clariety as to when the trial results are expected to be released and some idea as to when the rights will be sold and the potential value to shareholders from supply.

Bascially the company is a mystery which requires investors to trust the product and management to grow shareholder value.

Clearly one of these is world class...