February 23, 2013

#PVCT's #China #Arbitrage Opportunity

I have queried Peter extensively about China on a broad array of topics. One item of particular interest to me was the notion of an "arbitrage opportunity" potentially arising from geographic-based interest in PV-10: China vs. the West.

On the one hand: While many Western Big Pharma companies are very interested in the drug, they still desire to understand the story of how and why a very effective local agent can have as comparable systemic and immunologic benefit. Thus, we wait for Moffitt.

On the other hand: The Chinese are much more interested in understanding whether PV-10 works and works cost-effectively.

Both hemispheres agree the drug is safe, and both acknowledge PV-10 is effective. It is possible, however, that cultural differences might contribute to each party's thinking and decision-making processes. One wants to know why and how, while the other wants to know how much.

The arbitrage opportunity thus would be (A) an early monetization of Provectus through a regional license deal with a China pharmaceutical company that is prepared to act now {monetization through sizable upfront, milestone and royalty payments that increase share price to where some shareholders exit out of some of their positions} -- versus (B) a later, more fuller monetization of the company through its acquisition by Western Big Pharma because for the time being these pharmaceutical companies will not act {monetization through end-game share price}.

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