Alizyme Share Discussion Threads

[capricious] 19/10/2009 09:39

So it is still possible Tak will purchase Ceti for the Asian market, including royalty payments, which are already part of the original pre collapse arrangement. Administrators still have to try and get the best value possible, especially as this also increases their fee. I can't believe Tak will not purchase the rights after using large amounts of capital for the trials, which i guess are still ongoing. This announced deal may now put a ceiling on any other deals though.

[corsondav] 19/10/2009 08:52

Just wonder why Timmy could not get anything out of Norgine? Whilst we don't know all ins and outs I'd have thought 4mil odd would have let us struggle thro' to Jap results.Think tm was too close and the dealing(or lack of it) all got a bit personal.

[dunderheed] 18/10/2009 21:42

Blimey - didn't expect to get any support from there?!

[marwalker] 18/10/2009 10:51

Sunday Times reports that following the sale of one of AZM's drugs that Grant Thornton believes that a 'small' payment will be distributed to shareholders.
£4.2 million was the price ..... but I suppose the liquidators will get a big slice as usual.

[rod boner] 17/10/2009 11:39

On AZM's website and email alert service:

Administration of Alizyme plc and Alizyme Therapeutics Limited:
Update Dated: Thursday 15 October 2009

NOTICE OF CANCELLATION OF LISTING FROM THE OFFICIAL LIST

Comment from Ian Carr, Joint Administrator of Alizyme plc and Alizyme Therapeutics Limited

"Following my request, the Financial Services Authority has cancelled the ordinary shares in Alizyme plc - in administration, from the Official List of the London Stock Exchange effective from 14 October 2009.

This step will allow me to dispose of the assets of Alizyme plc and Alizyme Therapeutics Limited for the benefit of the creditors and shareholders of the two companies. It does not affect the respective rights of the shareholders of Alizyme plc to potentially receive a dividend from the remaining net assets of Alizyme plc, if the creditors of Alizyme plc are fully repaid."


-------------


Administration of Alizyme Plc and Alizyme Therapeutics Limited:
Update Dated: Friday 16 October 2009

Comment from Ian Carr, Joint Administrator of Alizyme plc and Alizyme Therapeutics Limited

"The Joint Administrators are pleased to announce the sale on 15 October 2009 of cetilistat, (the major product of Alizyme Therapeutics Limited) to Norgine BV. The initial consideration is £4.6m with provision for possible future revenues from a share of milestone and royalty payments.

The sale should enable a dividend to be paid to Alizyme plc, the largest creditor shown in Alizyme Therapeutics Limited's Statement of Affairs, which in turn should permit a small dividend to Alizyme plc shareholders.

It is not possible at this stage to be more precise as to dividend prospects for creditors and shareholders until realisations are completed and creditors claims adjudicated for both Alizyme plc and Alizyme Therapeutics Limited. The Joint Administrators will update creditors and shareholders as and when appropriate".

[dunderheed] 17/10/2009 09:24

mm you are correct - i have taken losses on a company not on the list - but specifically pointed this out to the IR - it was abit more complicated than that but basically very similar - once again - cheers for all your posts geyser!

[mad mike] 16/10/2009 22:36

At the present time, although it is not possible to put a price on Alizyme shares, the value cannot be zero. If you hold the share you will get future dividend payments. So that means they have value to someone wanting the dividend payment. So at this time you cannot realise your capital loss on Alizyme.

ElGordo, correctly states that the Inland Revenue maintains a list of companies with neglible value, so for those companies you can claim your capital loss based upon a current value of zero. As he also says this may take years.

I know of at least one examples where the CEO stated the shares had negligible value, it then took over a year for the company to be wound up, and now some two or three years later, the company is still not even on the Inlanad Revenue list (even though the company no longer exists). So the Inland Revenue list is not a full list of all companies with neglibible value.

In fact to declare to the Inland Revenue your shares are worth zero vlaue, and thus claim your capital loss, you don't have to wait until the company's name appears on the IR list. All you need, I understand is to point to documented evidence that the company has negligible value e.g. following a declaration by the CEO, the administrator, or the liquidator.

[dunderheed] 16/10/2009 16:52

T_d - absolutely and I have a long list of dead ones to prove this!
El Gordo/loaf - thanks very much.

[the_doctor] 16/10/2009 16:49

Dunders - agree, yes.
Unfortunately, as I'm sure you know, many pharma companies and their commentators, sadly push hugely optimistic views of a drug's prospects

[elgordo] 16/10/2009 16:47

This is what loafofbread is referring to -



Be warned that it can be years (and I mean 5+ sometimes) before a company makes it onto this list.

[dunderheed] 16/10/2009 16:41

Yes - because they have an upside that is not measurable in normal finance parlance.
Also without wishing to get shot down your comments are subjective as well.

[the_doctor] 16/10/2009 16:40

"I am actually a qualified accountant"

Yet you've invested a fortune in financially flawed companies??

[loafofbread] 16/10/2009 15:34

Dunders.

You will certainly be able to use AZM as a CGT loss (as long as they were held outside of a ISA) and offset it against gains elsewhere, be it property or shares.

However, I believe the Inland revenue (or whatever they call themselves)have to declare it 'of no value' at some point in the future. That date is your trigger point, not going into admin.

Search the IR site 'shares of no value' or something like that.

[dunderheed] 16/10/2009 15:19

VOW - cheers no realised the difference bewteen isa or as I used to have peps and not getting teh cgt losses!

I am actually a qualified accountant (amongst other evils!) - but not interested in persional stuff - ie more analytical background thus am rusty at personal tax etc. Looking at the language for my non pep/isa stuff will get full cgt relief and future divs will be income tax payable.

[vow] 16/10/2009 14:58

Dunders, depends on how you invested. Those who invested in an ISA will have no tax relief on their shares.

Potentially some good news for Shareholders. "future revenues" mentioned for the 1st time rather than one off dividends.

"Shareholders in bankrupt Cambridge biotech firm, Alizyme plc, are in line for a dividend payment following the sale out of administration of the company's major product – cetilistat – to Norgine BV for £4.6 million.

Ian Carr of Grant Thornton, the joint administrator of Alizyme, said this £4.6m consideration was just a starting point, adding that there was provision for possible future revenues from a share of milestone and royalty payments.

He said: "The sale should enable a dividend to be paid to Alizyme plc, the largest creditor shown in Alizyme Therapeutics Ltd's Statement of Affairs, which in turn should permit a small dividend to Alizyme plc shareholders."

Carr said it was impossible to be more precise as to dividend prospects for creditors and shareholders until realisations were completed and creditors claims adjudicated for both Alizyme plc and Alizyme Therapeutics.

Alizyme called in the administrators in July 2009 following weeks of unsuccessful discussions with its commercial partners as it desperately sought the funds needed to keep the business going.

The company had reached a position where funding obligations on its development programmes had held back its work, which in turn affected its ability to reach the all important milestones that would trigger the payments which Alizyme depended upon for cash flow."

[dunderheed] 16/10/2009 14:13

Quick (potentially) stupid question guys.

1. The losses for AZM now are all cgt off-settable?
2. Any 'dividends' paid later will be div inconme and hence normal income tax payable?

Cheers for any clarification around this.

[the_doctor] 16/10/2009 14:08

'then that is truly a disgrace'

As I have said for a long time, various factors have meant little more should be expected (ex-Japan)

- ceti is not a good product, it barely does anything
- generic orlistat will be available by the time ceti launches or soon after
- Norgine will have to invest significantly in Phase III to even get ceti to registration stage and even then, regulators may say no.

Given the levels of return, it is not a great prospect for any partner.

However, I do hope for holders' sakes that Japan is separate.
That there may be some reasonable approval milestone payment

[mad mike] 16/10/2009 13:58

It does not say for what regions cetilistat has been sold. If it includes any royalties/milestone payments for Japan, then that is truly a disgrace.

I think i would have been helpful if clearer and fuller facts had been published in the news item.

[dunderheed] 16/10/2009 13:46

Yes but there is a provision for future Royalties as well loaf?

[ps0u3165] 16/10/2009 08:12

MM - Thank you for the information.

[fidra] 15/10/2009 18:54

Thanks MM for that .Hope all is well with you.

[mad mike] 15/10/2009 18:40

loafofbread, I don't know anything else, sorry.

[capricious] 15/10/2009 16:31

I cant see why the administrators wont wait for the 30ml to kick in for CETI, if results are as expected, then sell.