Rob TV Interview: Dr. Paul WalkerDr. Walker was very good, straightforward, in the interview. He explained that there are discussions with Elan but that Elan has recovered as a Company by focussing on a few areas of strength, diagnostics not being one of them. He was then asked that Elan doesn't opt to make the milestone payment, is he confident that another company will step in. His answer was an assured "yes". He indicated that Spectral has been talking to other companies (plural) and he is "very confident" that if Elan doesn't step up to the plate, others will. He indicated that not only did the sepsis diagnostic test get fda approval, but it has become "the standard". He indicated that this was of necessity the case because no one else has the kind of diagnostic capability that Spectral has developed. He also indicated there are substantial barriers to entry for any competition. He said it took Spectral several years to develop its endotoxin detection system.
Dr. Walker pointed out that Spectral's system will detect in one hour, through a blood sample, someone who is at high risk for sepsis. Now it takes several days (to grow a bacterial culture and analyze it). Finally Dr. Walker pointed out something that was very surprising to me, that more people die of sepsis infection every year in the U.S. than through heart attacks. The interviewer ended by saying, I gather you are developing a West Nile test. We will have to have you back on to discuss this.
I wouldn't be surprised if Elan paid the $ 5 M and then sold its rights. Or if there was three way horse trading. Should be interesting!