I asked at a pharmacy on main st here in the 'nui and they said the sale of Arthrem is nearly back to what it was before the medsafe scare.
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I asked at a pharmacy on main st here in the 'nui and they said the sale of Arthrem is nearly back to what it was before the medsafe scare.
The severe cash burn was there before any damage was done by Medsafe... this one is going to be stuck in one of those never ending snowballs of cash raises.
NZ sales alone are never going to cover PIL's current expenses and the establishment costs extending Arthrem any further overseas ( without a licensing agreement ) will require capital they do not have.
A high margin product like Arthrem could easily be absorbed by an established player with existing facilities to return a solid profit.
Great news to hear things are returning to BAU post Medsafe notice. Not sure I agree with severe cash burn pre Medsafe. They have shown positive cashflow in the past when quarterly sales were at a respectable level. https://www.nzx.com/announcements/296304
4Q16 was the only period of profitability in 3 years for PIL... let's not pretend like Medsafe are the reason they aren't profitable.
1H16 = -366k
FY16 = -459k
1H17 = -350k
FY17 = -876k
Staff and employment costs have risen to 388k from 180k for what reason exactly?
A few notes from the Annual Shareholder meeting today:
- After the Medsafe Alert sales of Arthem dropped to 10% of previous level. As a promotion had recently finished, pharmacies were stocked up while sales were dropping.
- Key competitive products have been withdrawn following the Medsafe Alert, so a small silver lining for PIL.
- New and quite intensive strategy involving pharmacists seems to be working, sales
trending up. Small inhouse marketing group formed and are contacting all pharmacies by phone monthly, and programme of visits rolling out. The latter will expand as funds allow. A short 4 question survey for pharmacies to use with enquirers has been rolled out (4 x yes = OK). Same approach will be rolled out in Australia.
- Not much on Artevite. Early days. Safe testing done by Massey Uni, no clinical trials yet (cost). Successful clinical trials should lead to vets prescribing.
- Convertible notes issue coming, minimum $10,000. Associates of one of the directors has committed to a large 6 figure take up, a sign of confidence.
- Quite a bit of talk and discussion about Medsafe - very unresponsive to info requests and queries, and so coming across as arrogant.
ETA Marketing function has been brought inhouse which may be some or most of the reason for staff costs rising.
must be due for a quarterly update soon...
and there it is.... me thinks they need to find some cash - STAT
Promisia just cant get a break - another Med safe update !
Crikey, not looking good. Could This be the death knell for PIL? It is certainly not going to help their CR/consolidation.
(Disc - did hold, but no longer. Watching with interest.)
and after weeks of nothing, someone hit the ask for 950K shares.. i see Artevite have a 2 for 1 deal starting tomorrow.