Aortech Share Discussion Threads

[vega44] 10/10/2012 16:40

This was just posted on FT alphaville by a poster, Muttondeaf, interesting comments...

The contract AOR has with St Judes is loss making for AOR. ST Judes HAVE breached the contract, clear evidence of this exists and can be exhibited by AOR when they so choose to do. By terminating the contract, as they are now entitled to do, AOR are free to contract with St Judes rivals to supply them with the same material as St Judes use under the Optim name AND St Judes will no longer be able to use Optim as no further supplies from AOR. ST Judes have built up a supply of Optim but this was obtained under terms which could also be a breach of the contract.

When the market realise the full significance of the contract termination for St Judes, the share price is likely to slide and only then will the full value of AOR be appreciated

[papillon88] 10/10/2012 11:57

For a small amount of money to STJ and to ensure no disruptions regarding production, negative publicity not to mention legal costs I do not understand why STJ would not spend circa £10 million and make a bid.
What are their shareholders views of this action from the STJ board

[stevie blunder] 09/10/2012 19:21

A St. Jude Medical spokeswoman told MassDevice.com in an email that the kerfluffle will not have an impact on its ability to make the lead insulation, which it calls Optim.

"The allegations raised by AorTech are without merit. The rectification notice St. Jude Medical has received from AorTech is based on inaccuracies and misrepresentations, and we will vigorously defend against these claims," she wrote. "St. Jude Medical has a sufficient supply of inventory from AorTech to continue manufacturing Optim-insulated leads and we have adopted other contingencies that will prevent any supply disruptions of Optim in the future. The manufacture and supply of our Optim-insulated leads will not be interrupted."

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I have sold out at a bit of a loss (luckily I sold 40% a lot higher up, so the loss is bearable) But am following from the sidelines.

It does look like a last ditch effort from Aortech, as St Jude could presumably take the equipment out of the factory and shut them down completely.

You have got to be sorry for the staff who moved from Australia.

[tadders2] 09/10/2012 13:55

You are correct Spurious.

[spurious] 09/10/2012 11:53

let us see what unfolds Marlin
All companies are capable of breaches of contract some deliberate and some through sheer incompetence.St Jude seem to have been a little more accident prone of late
The BOD have stated it is their informed view that this breach cannot be rectified and I feel they are closer to the action than you or I
As far as funding is concerned if the case is strong then American lawyers would be falling over themselves to advise on no win no fee, and I feel the Co would be able to raise additional funds required
St Jude have it all to loose

[gac141] 09/10/2012 11:32

Let's see what happens. There is no doubt they feel they have been wronged.

[marlint111] 09/10/2012 11:18

I'd be willing to bet that nothing comes of this. I can think of no conceivable think that St Jude might have done to constitute such a material breach of the contract that it cannot be rectified and must be terminated.

Does AorTech even have the funds to pursue a legal action against St Jude if they were to continue making the material? Seems unlikely.

[spurious] 09/10/2012 11:09

It would be important to get confirmation of what caused the material breach and Im sure this will not be long in coming as the American press tear into St Jude scenting blood.
I would guess that as far as Aortech BOD are concerned they must feel there is a very very strong case to answer when they themselves are almost suggesting an inevitability of outcome after 30 days with return of license etc
St Jude probably calculate they have 30 days to decide on a purchase but each day means additional reputational damage, uncertainty,and a share price that can only reflect the ongoing dispute.
One wonders if the lunatics are truly running the assylum at St Jude or if reality and commonsense will bring a swift conclusion

[gac141] 09/10/2012 10:16

We have nothing to loose- They have.. Plus they have massive institutional investors that will not be happy with the significant uncertainty this presents.

[semper vigilans] 09/10/2012 10:08

Lawyers involved - automatic health warning!

Common sense may not prevail....

[guru] 09/10/2012 10:03

I reckon they will be "TOLD" to sort it out PDQ so that AOR withdraws this immediately before too much damage is done to the reputation of St Jude.

[guru] 09/10/2012 09:54

I bet someone in St Jude will feel the heat on this!

[the prophet] 09/10/2012 09:33

-interesting development
-wonder how much this will hit St Jude's share price?
-also wonder what some of the more experienced and/or larger AOR shareholders feel about this move?

[gac141] 09/10/2012 09:32

Maybe it has just happened?

St Jude have said and made some ridiculous statements etc in recent times relating to AOR and this may be one step too far....

[marlint111] 09/10/2012 09:28

That's assuming there IS a breach of contract. To me, this feels unlikely (why would St Jude risk breaching the contract when they are getting a very useful material for a very cheap price on a perpetual licence).

Feels to me like the Board are saying- we're going to go bust anyway (in which case St Jude probably get the IP), so we might as well have a last ditch attempt at getting out of the contract.

I expect this to fail (if St Jude were in breach of the contract- why wait until now to do something about it)

[gac141] 09/10/2012 09:20

St Jude have a choice- Either make amends or loose a decent percentage off their share price and face market uncertainty.

Simple really.

[marlint111] 09/10/2012 09:17

Anyone any thoughts on the legal action? Feels like a desperate last roll of the dice to me...

[semper vigilans] 09/10/2012 09:16

Will today's announcement flush out St Jude to make an offer and at least put a bottom under this?

[papillon88] 03/10/2012 13:34

Gac, Des,
Any thoughts on the current situation

[abc125] 02/10/2012 21:52

This post sums up the present predicament. To put it bluntly, directors knowingly sold shareholders short.


marlint111 3 Jul'12 - 13:20 - 1519 of 1749

The big unknown here is the contents of the Optim contract with St Jude.

It would not surprise me if there were clauses which

a.) Stated that upon bankruptcy the IP passes to St Jude.
b.) States that even if Aortech is acquired, the contract cannot be terminated, and St Jude can continue to buy the polymer at the same rate.

If this is the case, I find it hard to see what the motivation would be for anyone to acquire AOR...

[cocker] 02/10/2012 21:20

The way this is unfolding reminds me very much like Meldex/Bio Brogress where shareholders ended up with egg on their face after endless promises. Perhaps if Roy could share his views on the latest news as his investment is over 6%.

[piccolino3] 02/10/2012 11:43

The Heart Valve is a class III device and requires $10's of millions to bring to the market. They could sell the material to a heart valve company, but then why would they have not done this before now?