Post by
RetailRube on Aug 11, 2016 8:48am
MCNA not officially dead yet
The most powerful document in Canada is called a Proof of Death Certificate. It is accepted everywhere without question. There is no coming back after that is issued. Anyone who has dealt with this will appreciate its simplicity and clarity.
Telesta has not yet issued a Proof of Death Certificate for MCNA.
The press release of August 2nd said "there is no reasonable assurance that a development partner in any region of the world can be found for MCNA in the short term." So Telesta has stopped looking for a partner. Also, "Telesta will close its Montreal-based manufacturing facility."
Partner means Telesta would share with another company in funding clinical trials, Telesta would get to keep manufacturing profits, Telesta may get part of the profits from US and European sales, and the partner company would have to have a meeting with Telesta to make any development decisions. Endo hated the last part because it slowed them down. That is likely why Endo exercised the option to get world-wide rights long before the deadline. It cut Bioniche out of the decision-making. No partner means no company, including Ipsen, wants to share profits or decision-making with Telesta. And they don't want to operate a small plant in a foreign country. Might as well close the Montreal plant.
Telesta has not said "There is no reasonable prospect of finding a buyer who is willing to acquire the patents, manufacturing process expertise, clinical trial responsibility and 100% of profits if successful."
On August 2nd, Telesta could easily have issued a Proof of Death Certificate: "There is no reasonable prospect for finding either a partner to share in the development, or a buyer for the patents and all worldwide rights. Nobody wants it." But they didn't say that. They also could have announced "Based on the meeting with the FDA following the A-Meeting, we determined that the clinical trial protocol requested by the FDA was so expensive and risky that it is not economic to proceed." But Telesta didn't say that either.
So MCNA is not officially dead yet. I think they are now negotiating with a buyer for the patents and all development, manufacturing and marketing rights. Endo is the prime suspect because the development agreement with Palladin (now Endo) for Canada, Mexico and South Africa is still in force. Telesta has not yet announced the termination of the Palladin agreement.
Comment by
Tson99 on Aug 11, 2016 10:07am
All good points, any idea what the years of research, development and patents related to MCNA are worth at this point?
Comment by
Frogger2 on Aug 11, 2016 5:25pm
A better question is how is Telesta being paid for the use of MCNA in animals? I know for that TST still controls this.
Comment by
Mikepal on Aug 30, 2016 2:27pm
LittleLady PhD - little confused your post from 8/12/2016 indicates Telesta not dead....but, now you are saying it is dead to other offers coming in...pls advise
Comment by
Mikepal on Aug 30, 2016 3:15pm
Yes - I know the story well - been here 7 years ugh - thks for clarification- would really like to see a competing offer but, unless someone needs the two plants with an inexpensive retro fit and cash more than PLI - I think we might have to face the .14 deal
Comment by
Mikepal on Aug 30, 2016 5:14pm
Whatever happened to "Seeking Alpha's" valuation found right here - see bottom of report: https://www.telestatherapeutics.com/cms/phpSuAqEX.pdf
Comment by
vega509 on Aug 11, 2016 5:24pm
it is worth only what someone is willing to pay for it. to date, and for the better part of a year, it has been worth less than the cash on hand valuation. IMO potential buyers are hesitent to absorb the current management salaries, and benefits, along with their lack of any results, thus the discount to cash value and lack of interest from suitors.
Comment by
TheRock07 on Aug 11, 2016 11:21am
Excelent point. GUD have the necessary dough and those tax assets are a necessary requirement for GUD. But, they are not yet drug developers, preferring to buy already approved drugs. Of course, they could then spin out MCNA as a seperate biotech...
Comment by
DerekForeal on Aug 11, 2016 11:43am
Send an email to GUD & TST's management of your acquisition proposal. Maybe something will come out of it. I'm just scared that the our ridiculous management will buy a phase 1 drug try to hype it up, keep most of the cash collect their boosted salaries for 5 years and resign.