Aortech Share Discussion Threads

[tadders2] 18/10/2012 17:39

Lets hope so.

[gac141] 18/10/2012 17:38

He may eat his words........

[bearfoot] 18/10/2012 17:22

ooooooooh goood! That's great press gac141! :-) Yes, would be excellent to understand the nature of the breaches....and critically if the Declaratory Judgment direction suspends the AOR termination notice....

Here's (part of) Dan unconvincingly is reported as saying (source: ) on the earnings call yesterday in answer to what was the final question:

"On Aortech, I don't have any particular comments other than to say that there's nothing material to our business involved in their publicity efforts and no merit to any of their claims, but that is -- I believe that's -- that those communications between us are really covered by confidentiality agreements is my understanding. I'm not in a position to say more, other than to say that it's not material and no merit to anything negative."

[bearfoot] 18/10/2012 17:20

Hmmmm....

seems STJ would have expected this outcome based on how Declaratory Judgments are used in the US:

Definition from Nolo's Plain-English Law Dictionary:

A court decision in a civil case that tells the parties what their rights and responsibilities are, without awarding damages or ordering them to do anything. Courts are usually reluctant to hear declaratory judgment cases, preferring to wait until there has been a measurable loss.

.....so what have they achieved? A delaying/spoiling tactic? Seems to me only to force the company to talk with them and 'sort it out'? ...this could go on a (too) looooong time (18 months supply of leads)...or am I missing something here?

[gac141] 18/10/2012 17:18

Already hitting Wall Street..

Wall Street Cheat..

Conversation: Wall st cheat
Subject: Wall st cheat

Maggie Campbell

Of greater concern is the withdrawal of the supply of Optim by Aortech, understanding is that St Judes are on the back foot and anxious to do a deal, but Aortech not playing the traditional role of the underdog and have gained the upper hand. Mr Heinmiller may have bitten off more than he can handle by taking a holier than thou attitude at a recent meeting.

[vega44] 18/10/2012 17:17

If we can get the court documents then we will know the nature of the breaches. Not sure if they are public at this stage.

[spurious] 18/10/2012 17:11

Guru you are bang on the money

[gac141] 18/10/2012 17:10

Trust me they are very interested!!!!!!!!!!!!!

[bearfoot] 18/10/2012 17:10

Declaratory Judgement

A binding judgment from a court defining the legal relationship between parties and their rights in the matter before the court. A declaratory judgment does not provide for any enforcement, however. In other words, it states the court's authoritative opinion regarding the exact nature of the legal matter without requiring the parties to do anything.

The Federal Rules of Civil Procedure (Rule 57) and Title 28 of the U.S. Code govern declaratory judgments in federal court. For an example from case law, see Roe v. Wade 410 US 113 (1973).

[bearfoot] 18/10/2012 17:10

Declaratory Judgment:

see

Seems to be used (or at least intended) to clarify legal positions....as Harrogate says....this is consistent with STJ's ongoing stance.....however as spurious says, by directing the parties to mediation, it seems to present anything other than clarity!

[gac141] 18/10/2012 17:08

This is not scary- St Jude are very concerned that they might loose control of Optim.It will bring them to the table and we may sell our company. I do not think that the termination will be delayed.

[guru] 18/10/2012 17:08

Sounds like despite the CEO of St Jude saying there is no merit, no risk, etc etc, the Courts have not agreed with the Sr Jude position. and told them to mediate...I wonder what the US press will make of this after yesterdays conference call!

[bearfoot] 18/10/2012 16:57

So, they are saying not only that there is NO breach.......but that the alleged breaches do not permit termination...(no surprise there then) ....and have sought a court declaration....and the district court has effectively said....Private mediation!! so, does this mean the termination notice is suspended pending the outcome?

I hope we are well and appropriately advised and funded to do so...they will have armies of expensive US-savvy legals running all over this

Scary stuff....

[spurious] 18/10/2012 16:57

My limited knowledge of the law tells me that the judgement suggesting mediation is the least severe that could have been made and would suggest that the judge was far from convinced by St Judes case.
The best outcome Aor could have hoped for in circumstances and should convince any doubters on the strength of the Aor claims
Interesting times ahead

[harrogate] 18/10/2012 16:56

I have to say if he believes in their position then saying there is no risk and taking it to court to get a decision is pretty consistent and sensible.Arbitration doesn't sound a quick process and maybe the court will make the parties stick to the agreement until resolved. I think AOR should tell us what happens until the matter is decided. I feel pretty uncomfortable about our position here.

[gac141] 18/10/2012 16:45

Well Dan says he sees No Risk from Aortech yet they are getting Lawyers involved. Sounds like they want to get this sorted out........... Every Risk!

[1prophet] 18/10/2012 16:10

Nervousness about Aortech and what they intend to do. To me it is clear. Close the factory. Serve termination letter. Wait; see who comes to the table. It might not only be St Judes. Many interested parties before the latest situation.

[papillon88] 18/10/2012 15:34

Harrogate,
the share price rise from mid 50p to £1 suggests that there is funding in place, but I do agree with you that we need an update re the terms

[harrogate] 18/10/2012 15:08

I am not sure it really matters to us if StJ are downgraded or upgraded. What matters is that we need to find a buyer for the company or the IP pretty soon and I do think the company now needs to providee any update of the funding situation.

[vega44] 18/10/2012 15:03

who downgraded?

[gac141] 18/10/2012 14:55

STJ on the slide again.

[gac141] 18/10/2012 12:19

3 Analysts Downgrade St Jude

[gac141] 18/10/2012 10:39

St. Jude foresees FDA warning letter

Oct 18, 2012 (Star Tribune (Menafn - Minneapolis)
The U.S. Food and Drug Administration is inspecting St. Jude's cardiac rhythm management plant in Sylmar, Calif., which makes defibrillators. CEO Daniel Starks said the probe could end with a warning letter, but he did not give details about what it would address.

Such a letter can prevent a company from getting additional products approved by the FDA until deficiencies are corrected.

Starks said on a conference call with analysts that the company disclosed the possibility of the letter to be transparent to investors. "The overriding motive for us is the appreciation that investors do not like surprises," he said.

St. Jude shares tumbled in the wake of the news. The stock closed Wednesday at 40.85, down 2.09, or 4.87 percent.

The Sylmar facility is where St. Jude manufactured many of its Riata and Riata ST silicone leads -- wires that connect defibrillators to a patient's heart. Those leads have been under scrutiny since late 2010, when St. Jude sent a letter to doctors detailing that inner wires were penetrating the lead's outer insulation and pulled Riata from the market. In December 2011, the FDA recalled the device.

John Heinmiller, St. Jude executive vice president, said Wednesday that a warning letter could come 60 to 90 days after an inspection of the Sylmar plant is complete.

Starks said the company is already planning for the warning letter in its 2013 company plan and that it likely would not affect sales of existing products.

[vega44] 18/10/2012 10:30

"no merit in anything negative they have to say" is the line I liked best.

[gac141] 18/10/2012 09:46

One thing I heard when re-listening to the call was that Dan said that when he said he could not comment further( In other words did not want to) was that they had a confidentiality agreement in place with Aortech so could not say more. He was desperate to close the Q&A!!!!!!