Alltracel Pharmaceuticals Share Discussion Threads

[supernumerary] 26/2/2008 23:59

Catching up on my reading I came across this. Makes interesting reading given AP's pipeline...


Shock to the system

Jan 31st 2008 | NEW YORK
From The Economist print edition
Cholesterol drugs are under attack

"I SEE profound consequences arising from this," says Steven Nissen of the Cleveland Clinic, an American research hospital. Dr Nissen, a leading cardiologist, is up in arms over the way Merck and Schering-Plough, two American pharmaceutical giants, have handled a clinical trial of Vytorin, a blockbuster anti-cholesterol drug produced jointly by the two firms. Could this controversy upend the $25 billion cholesterol-fighting industry?

For years, the drugs of choice in combating heart disease have been statins such as Pfizer's Lipitor and AstraZeneca's Crestor. Concerned that the patent for its own statin, Zocor, was due to expire in 2006, Merck found a clever way to rejuvenate its franchise. It combined Zocor with Zetia, a cholesterol drug developed by Schering-Plough, to create Vytorin. (Statins reduce the formation of so-called "bad cholesterol", or LDL, in the liver; Zetia reduces its absorption.) But the Vytorin study, completed nearly two years ago and released only in January, found that on one important measure, the pricey branded drug was no more effective than the generic version of Zocor on its own, which costs one-third as much.

Merck and Schering-Plough insist they have done nothing wrong, and are adamant that Vytorin remains an important drug.[...]

[4web] 26/2/2008 19:47

Alimo, I have spoken to some advisors here in the Netherlands. They all think we are being screwed. One of them will inform some of his pharmaceutical clients on the potential within Alltracel which is being thrown away at the moment.

I think there is something we could do with a statement I read somewhere from Hemcon. Something like: "we started discussions on a potential takeover the day we met." Ever since Alltracel met Hemcon management didn't try to really boost share price anymore.

The advisor told me that something like our last patent should have been reported.

[alimo] 26/2/2008 13:55

I see on the ISPartners Investment Solutions website, they control the Helium Special Situations Fund which holds 13% at the last RNS. The investment approach for this fund is stated as:-

"Helium Special Situations Fund
A long-bias equity fund with a dedicated focus on listed (mainly within the AIM segment of the London Stock Exchange) and pre-IPO small and mid cap companies in the UK. It follows an event-driven, long-term buy-and-hold approach and targets superior returns based on a concentrated portfolio of high-conviction core holdings."

Surely they had greater hopes from investing into AP. as the Nano deal was announced with Hemcon back in Jan 2007 and adding to their holdings at strategic times during the year. Having to sell out so soon and at price that hardly will cover their expenses, can't be something that they will be happy about! It just doesn't seem to add up with their "superior returns".

Has anyone contacted them yet, because I feel it is important we do. It would be great if Gerard Brandon would discuss things with them - probably he has already.

[4web] 25/2/2008 19:30

JC, if I can help you in anyway.

Wes1 I have received an e-mail from Gerard Brandon. I do think he will in the end accept the offer if there is no better alternative.

I will ask Gerard if I can publish some parts of his e-mail to me.

4web

[alimo] 25/2/2008 18:59

We should be trying to save the IP from going away to the USA just at the crutial breakthrough stage. This is an Irish company being gobbled up by Americans, who will likely spit AP. out as soon as they can take all they can get their hands on. I don't understand the directors saying that no other offers are forthcoming - that may be true when they kept everything quiet between 21/1 and 22/2, but how many third parties were given the opportunity.

Tony O'Reilly is a great example of an Irish businessman - maybe he was that great rugby player as well? Surely he has several friends who would be known to several of our Irish shareholders, who could bring together a better deal than this, and save AP. for a larger future, in Ireland. What do our Czech friends have to say about the value of all their work to date!!

Do you think Hemcon have turned the screws on Tony and Nick in some way. They must have known that the offer is derisory. They aren't daft, but hopefully we will be able to mount up to a considerable force to stop them and give a lesson on how to choose friends.

AP. could still be one of the greats as was envisioned when they set the size of the Authorised Capital way back at the beginning, when GB was in charge. They must have had really big ideas for the company then. Is GB fully occupied in his new ventures, or could he be a white knight and come back with the friends he has made over the time he has been away. He had the skills to get all the SBF products on to the shelves all over Europe and beyond. Pity he got diverted away. Look what happened to Stagecoach when Brian Souter went away. Look how Stagecoach has been transformed when BS was brought back in. Would GB even consider getting back into harness to take AP. over the next hurdles. Sounds as though Tony and Nick may only be 'also rans' who weren't blessed with the same vision as the GB team at the beginning.

Wes1 I hope you are still able to contact GB and ask if all he has learned about IT and the Internet over the last few years could be used to mount a direct retail sales division using the new products.

[jellyman2] 25/2/2008 18:09

well done 060 and good luck

[wes1] 25/2/2008 11:03

numbers - thankyou very much

[wes1] 25/2/2008 11:02

cap'n - All the promises have been locked away in the bottom drawer and will be pulled out when none of us is around

[danwaits] 25/2/2008 10:53

06015197,

Your efforts are very much appreciated

[06015197] 25/2/2008 10:42

Gentlemen,

I am arranging for a firm of solicitirs to recieve proxies from those of you prepared to vote against the resolution at the EGM. So, hold tight for the moment.

I am also preparing a brief for submission to a QC/SC for a legal opinion. There is a particular issue that I have a concern with.

There are several other issues that warrant looking into, but until I am ready to move on these, they remain on the back burner. Suffice to say the various regulatory authorities will be in receipt of dossiers.

[james t kirk] 25/2/2008 10:12

Wes, sounds like GB will be very upset about this and with more to lose than any single individual. I still cant fathom the complacency of the board in accepting this awful offer.

Surely raising money would have been no problem if they were so close to deals as suggested. Perhaps they really are the worst sales team in history and couldn't sell products that clearly could have been market leaders.

So much promise and so very little for shareholders..

[wes1] 25/2/2008 09:57

"Share boosting information" would have been the Nanofibre patent that they forgot to mention to shareholders, prospective shareholders or prospective buyers

[wes1] 25/2/2008 09:52

I suppose not.

This is an extract from an email I received from him at the time of the announcement - He has ignored me since then.

"... I am more annoyed at the lack of announcements that would have had the share price higher in the run up to any advance from an outside buyer.

However I look to the non-executive members of the Board of Directors to ensure that the interests of share holders are taken into consideration in the event of a low valuation bid. I trust that their own frustration will not mask their being acclimatized to a low price over the last two years and sell out too low.

I can absolutely see that the value is very enticing for any buyer as I would see 16p as someone pointed out as fair value for the cash part of the business not withstanding the huge investment in the science on top of that. I am wondering why management are not countering too quickly with any share boosting information to ward of a low value bid."

[wes1] 25/2/2008 08:05

4web have you (or anyone else) heard from GB?

[4web] 25/2/2008 07:46

JT, I start to think you might be right.

Helium, AXA, etc. they all have bought in for less than 12.5 penny. Current markets don't get them a > 15% return within 12 to 24 months. So they will sell.

I expect Gerard Brandon to do the same. In other words, we, being small shareholders, will probably not make the diference.

I feel mislead and robbed, but probably nothing we can do about it.

4web

[james t kirk] 25/2/2008 07:37

Dont expect any support from Helium, they have been buying at well under 14p and will probably be quite happy with a 20% return. I will be selling the last few I have this morning, as I's already run down my holding to practically nothing in recent days as I didnt see any deal likely.

As it turns out the deal was done a long time ago and I do not believe any action here will bear fruits. The best case scenario is that the deal stalls, but from what the RNS is saying, Alltracel may run out of cash and the offer will get reduced, so I'm chalking this doen to another AIM stock that's cost me considerably. I'm starting to question whether this whole stock market thing is worth bothering with and will probably run down all my other small investments in the coming weeks.

I wish you all luck in pursuing shareholder value..

[4web] 25/2/2008 05:29

I wonder how a company like AMS with less turnover, and I think less profit, can be valued at 38 mln pounds at the moment and a company like Alltracel is valued at 20 mln pounds.

Is this bad management or is AMS overvalued?

[wes1] 24/2/2008 21:43

4web - I'm not registered at iii. are they aware of the patent which AP didn't consider to report. Perhaps we should all post on the same board so we pull together.

I see someone has posted a mild comment at this local Portland newspaper it would seem that any name and email address is enough to get comment posted.

[danwaits] 24/2/2008 18:52

Folks, we all have a clear picture of what is going on here. Hemcon will take over at a huge discount to real value and will then possibly sell off the oralcare division (a substantial business in its own right) to Toolan and (maybe) Richardson. These events would have been facilitated by the actions of the board over the past 6 months in keeping information from the market and how the company's finances have been managed.
The result is that long term holders will feel a deep sense of injustice and some will hold suspicions that certain people have conspired to legally cheat them out of their funds. Most, like me will feel that we have held these shares through thick and thin and just when the company is finally about take off, we're forced to sell out and take a substantial loss on our original investments. AFAICS that leaves us with three options;
• We can kick the cat and vent our spleen on boards like this 'til it finally dawns on us that we just have to take it on the chin and move on. WTF were we expecting anyway; to be invited to the next AGM and presented with a long service medal?
• We can organise ourselves to build support against the takeover in the hope that the bid is increased or that Hemcon only purchase the technologies that interest them and the rest of the company is left intact.
• We can seek legal advice to see if we have room to build a legal case against the board and pursue a High Court challenge against the takeover. The Irish courts are easily accessible and the Yanks would run a mile if they were named in any legal dispute that even hints at any shady practices. This would cost a few bob, but do you know what; I don't give a sh*t, I would never forgive myself if I just rolled over on this one.

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[jellyman2] 24/2/2008 18:31

since selling in disgust a few months ago i only have 38k left but i suppose every little helps to stop these pikee robers.

[wes1] 24/2/2008 18:27

I'm not too sure if it is wise to put your email address on here for any length of time - but I don't know.

Last couple of sentences on this Eircom.net site tell a story


Mr Richardson will head HemCon's European operations.

HemCon has offered Mr Richardson and chief financial officer Nick Hart share options in the US company if certain financial targets are met.

[the bounty hunter] 24/2/2008 17:29

You need to try and establish the level of support that you have. Someone needs to set up a email box where holders can express disatisfaction at the level of the offer and advise level of holding. The institutions then need to be approached to find out their level of support to the offer. Alternative purchasers need to be approached and finally the offeror themselves if you have enough support to block taking the company private, to see whether the offer can be increased for a "clean" takeover.

[4web] 24/2/2008 15:58

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