IS Pharma Share Discussion Threads

[red ninja] 07/5/2009 19:11

ISPH get an experienced non exec :-

IS Pharma plc (AIM: ISPH), the international speciality pharmaceutical company, announces the appointment of Dr Michael McDonald as a Non-Executive Director of the Group. Dr McDonald will become a member of both the Audit and Remuneration Committees.

Dr McDonald has over 20 years' experience in clinical drug development and regulatory leadership. Previously he was Chief Medical Officer and then Chief Executive Officer of Oxford BioMedica plc. Dr McDonald was Chief Medical Officer at Seattle Genetics Inc. and spent nine years with Eli Lilly serving as worldwide Vice President, Clinical Research and Medical Affairs. Before moving to the USA, he was Executive Director of Medical and Regulatory Affairs at Eli Lilly Europe, responsible for all the company's European regulatory submissions. He received his medical degree from Edinburgh University, is a member of the Royal College of Physicians in London, holds a Diploma in Pharmaceutical Medicine, and is a Fellow of the Faculty of Pharmaceutical Physicians.

[gogoneko] 06/5/2009 08:58

I'm sure that the company will make the money to pay out the full amount of deferred consideration - I've no reason to suspect the company's performance will deteriorate.

[red ninja] 06/5/2009 00:46

gogoneko,

The £9 million payments are based on performance although not sure the exact
details are stated. Anyway good performance all £9 million is paid out, but in that case the business will I presume make the money to pay those loan notes.

[gogoneko] 05/5/2009 19:41

I posted this Aug '08 (although the $1.25m exception payment last Sept could cover a one of the £1m payments if they chose to), so perhaps now they owe £6-7m.:

"Last year's acquisitions of Acorus and this year's acquisition of SEPI both involved deferred consideration payments of up to £5m each over the next 4/5 years. I think £1m has already been paid, so only £9m to be taken from the cashflow until 2012. It's in the company news ".

News flow over the past year has hardly been much to get excited about but they're probably doing fine.

[red ninja] 05/5/2009 17:26

Mmm I think people are still watching, share price moved up about 7% to day.

Finals should be out end May/begining June and if they fullfil expectations, there should be a re-rating in the share price.

[auks] 01/5/2009 06:04

Remarkable lack of interest here. First post for almost 6 months. Gogo, u refer to deferred considerations...do u know when these are complete? The next results (end may/begin june) could see this spring into life if the company has continued to perform in line with its recent trend....just seems to have fallen off peoples radar..

[gogoneko] 06/11/2008 17:14

Yeah, the company continues to deliver growth and profits as expected and is slowly accumulating money.

I didn't see anything in the results though (or investor demand) to believe it'll go much higher than 80p. Perhaps another tip/recommendation may come some time soon but I reckon a re-rating will only occur if a big investor decides to buy a load, or if the regulatory approvals appear.

[edit]

Just noticed that growth company investor have plugged them again whilst failing to include any reference to the deferred considerations. Hopefully investors are doing their research before buying.

[dealit] 06/11/2008 06:55

Posts have gone a little cold but what a great set of results I feel.

[gogoneko] 27/10/2008 10:49

Finally arrived at 50p so I've picked up a few. Not sure if I'll hold for long though - it depends on what's in the results, or a stop-loss!

[clogue] 03/9/2008 10:05

Hazelton,
Now I feel guilty at not being a little more forceful in my attempts to provide more balance to this thread.
Hope you were not put off by the more extreme postings but I still consider that there is a great deal of value still to be had here.
I've no doubt you will have been able to convert $1.25 M to the correct figure of £700k.

[gogoneko] 03/9/2008 09:46

A good piece of news - I also would have thought there'd be a bit more interest from speculators but perhaps there's not enough confidence.

As usual it's hard to put a value on the deal (beyond the initial £600k) or when royalties are likely to start, but it's welcome nevertheless with the shares in the doldrums. I guess that there won't be much new news at the AGM a week today.

[steeplejack] 03/9/2008 08:19

They're doing well.Actions not words.I'm no chartist but that looks like a reverse head and shoulders.For all the natter about 50p,a pound beckons assuming anyone in today's market takes a jot of notice.

[gogoneko] 21/8/2008 20:00

As a separate point (and to rake over old ground) it could also be hypothesised that another reason for the low share price could be that if the company were to make another acquisition then private investors would once again not be invited to participate in any placing and would simply have their shareholdings diluted (and hence reduced eps) as has happened twice previously. Especially as on the first occasion at least one of the parties invited to participate in the placing (the placing price having been set at a nice discount to the prevailing market price) would readily sell shares on good news whenever the price represented a 30% profit. Hence private investors stood to gain very little from holding.

[edit]
p.s. I do actually think that the company is in its best shape now than at any time - it's the other stuff that stops me buying any at the moment.

[gogoneko] 21/8/2008 19:53

I don't think that there's anything extreme or invalid about the logic that net profits are diminished because of making deferred payments. Evidence otherwise would be interesting to read.

It could be said that without the acquisitions the company wouldn't be improving its gross profits, and I wouldn't argue with that, but the company first has a duty to pay deferred considerations from gross profits before it can do anything useful with it. The money left after these deductables for distribution/reinvestment may potentially not amount to much over the next four years.

[clogue] 21/8/2008 19:35

Hazelton,
Absolutely no offence taken. I only posted because it looked as though you had taken earlier posts at face value and had had been given a rather warped view of the company,its current position and its prospects.

[hazelton] 21/8/2008 19:01

clogue , I am sorry to have given offence. As I say I am not a knowledgeable holder of this stock. The recent company report I thought quite bullish and so I wondered why the share price was so dowdy. I was originally attracted to the stock as it had cash , directors interests , defensive sector and I recall it was held by a VCT(s). As I remain a holder I hope (like I am sure you) that it chart continues its breath taking curve - hopefully upwards. I am sure that I have not suggested that profits have been diminished or degraded as these profits are (in part) mine.

[clogue] 21/8/2008 14:49

Hazelton,
No,it doesn't take the shine off anything.
I wouldn't presume to give anyone investment advice and have simply ignored the more extreme postings on this thread,but as you seem to have been influenced by the above,I feel moved to give you some background information.
When the company made its recent acquisitions it negotiated that a portion of the purchase price would be dependent on certain performance criteria being met. As a shareholder I consider this to be a very prudent move and I am more than happy to have payments come from profits made from the acquisition.
Any company that wants to buy another company has to raise the money from somewhere and deferred payment is an excellent way to go about it, provided you can get the vendor to agree.
To suggest that profits have somehow been diminished or degraded simply because some are used to pay for the acquisition that generated them is very strange logic.

[hazelton] 21/8/2008 13:31

I see , so that takes the shine off from the highlights of the recent company reports. I had wondered why there was no fanfare but I am not a knowledgable follower of this stock.

Thanks

[gogoneko] 21/8/2008 08:17

Last year's acquisitions of Acorus and this year's acquisition of SEPI both involved deferred consideration payments of up to £5m each over the next 4/5 years. I think £1m has already been paid, so only £9m to be taken from the cashflow until 2012. It's in the company news

[hazelton] 20/8/2008 07:15

What did you mean by deferred payments from profits ?

[gogoneko] 07/8/2008 09:56

There's no reason to short the stock. Management decisions have removed any incentive to hold or buy this stock in the short term and so I expect investors are moving to places where there are better returns - nothing at all unusual about that.

If news arrives that business is considerably ahead of expectations then it could retrace to £1, otherwise why bother buying until 2010 - because until then company will just be making deferred payments from profits?

[macca20] 06/8/2008 19:28

waxman

I hope you are not shorting this stock.

[waxman3] 06/8/2008 15:19

50p is like a magnet to this stock

[waxman3] 03/8/2008 20:29

Dont think so personally I still think we will see 50p

[gogoneko] 31/7/2008 21:39

Ah, but they've worked hard to get the share price down to this level so maybe they need some motivation.

Actually it's perhaps a sign that they've reached the end of the dilutive acquisition trail because if they dilute any further they're not doing themselves any favours - unless of course they dilute and grant yet more options afterwards. Perhaps now they've got a low option price they'll issue some good news!