October 24, 2012

$PVCT.OB: Blog Reader Questions

Why didn't you mention a dermatology deal as a financing option? Do you think that the company, having embarrassed themselves and backed themselves into a corner, will be inclined to quickly ink a deal of some sort? Also, if the drug is so helpful to cancer patients, why don't they sell it to a big pharmaceutical company and get it in more clinical trials?
I previously mentioned a dermatology license deal as a financing option here.

According to management, Provectus does not need money for the foreseeable future (i.e., into August 2013), save to conduct pivotal, key and other clinical trials. Proof of this should be available to confirm or refute around early-November when the 10-Q is filed and available. As such, I do not think management views themselves as backed into a corner. They are keenly aware of what PV-10 and PH-10 are worth, and will strike deals accordingly. The PVCTP "IPO" was primarily about securing a NASDAQ listing, and obtaining money only at the right price and terms.

Management certainly wants to get the drug into the hands and bloodstreams of as many cancer patients as they can. An acquirer like Pfizer would very likely immediately commence multiple clinical trials to expand the number of indications to which PV-10 would be applied. At the same time, however, management understands the next several quarters are about further demonstrating the size and scope of PV-10's applicability to secure the $7-10 billion they believe the company is worth and the $3-4 billion they expect as an upfront payment in the end-game.

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