March 24, 2013

The Bigger $PVCT Picture

I previously wrote management could and would protect Rose Bengal’s economics in a size and scope commensurate with the depth and breadth of their innovation.

During Craig's presentation at the AFund/Wall Street Healthcare Symposium Luncheon, he noted the company was negotiating with potential partners for regional licenses (China, India, Japan, MENA) and in a due diligence process with a potential global license partner. Since Peter returned from China on March 3 (his second trip), there has been no comment from management.

What might be going on?

From both scientific/medical/clinical and capital markets perspectives, management is setting expectations. Most folks tend towards the negative in the absence of information. It's natural. No news is bad news. Some shareholders, particularly many of the more vocal ones, and prospective investors are skeptical of management. I understand, but do not agree.

Management has, for quite some time, said Provectus' primary customers are the FDA and Big Pharma. Implicit in this perspective is the stock price is better optimized with an appropriate deal rather than just any deal.

Monetization of Provectus' innovation to some is simple and straightforward, and should mirror what most small biotechnology companies do at different stages of drug compound development. If Provectus can, in their view.

I think it's more complex.

Management, and in particular Craig, had a very good sense early on of the import of their innovative discovery. Time progresses. More information came to light and was produced to broaden and deepen the size and scope of Provectus' innovation (even greater than Craig's expectations, to which he will freely admit). Data drives the value.

As a result, and from management's perspective, optimizing value or return on investment requires of them to determine whether additional data drives incremental or fundamental value. Have they done enough to complete the valuation picture for their discussions with Big Pharma.

In what appears and feels to be the last stretch of the journey, I think management thinks it makes sense to evaluate China, India and Japan in the context of the significance of the Moffitt data and its implications for breakthrough therapy designation from the FDA and global Big Pharma transactions.

If management remains silent on China for now, no news is not bad news. For me, no news is good news.

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