A big idea for Phylogica…

Hands down, Phylogica (ASX : PYC) is one of the most wasteful, pointless and irrelevant ASX-listed biotech companies. I have previously written about this utter farce of a company and frankly speaking, I had nothing to add to the discussion when PYC announced their successful fundraising last week of ~$10m smackeroos. I had nothing positive to say about the outcome and despite a bit of goading from readers, I could hardly justify wasting the digit muscle movement to comment. All this financing amounts to is another ten million bucks to piss away on meaningless “discovery” programs (I use that in the loosest sense of the word) and the odd animal model (if you are lucky). To be clear, the fundraising is not enough money to move the needle in any meaningful way whatsoever, but plenty of money to keep the company’s thoroughly underwhelming executive team living high for another two years or so, and at least another 8-10 shiny quarterly shareholder news letters.

Well done, Pattersons. And especially well done to Dr. Hockings for the underwriting of the underwriting (as it were) and the tasty fee that must have ensued. What a great way to achieve shareholder confidence while at the same time effectively taking control of the company. It really gives me a lot of confidence and comfort in PYC’s independent and impartial board when almost half of the equity participation of the top 20 shareholders (at 57% of the total cap table) is effectively under control of one person. Put Hockings and Sietsma together, and you basically have an immovable voting bloc in the company.

To be clear, it’s an immovable voting bloc in a completely shithouse company, but an immovable voting bloc nonetheless.

So here is my big idea. I know that PYC doesn’t have any big ideas – or at least none that are evident from its currently articulated commercial strategy (unless they completely pulled the wool over shareholder’s eyes in the last prospectus). Perhaps there is some lucrative licensing deal waiting in the the wings, or perhaps after frittering away the thick-end of $40m Richard and the team finally found something useful while gazing into a petri dish.

Though I doubt it…

Here goes.

I reckon that Dr. Hockings should take the company private. He now controls the company and he’s obviously got the cash to throw around. If I were a shareholder in PYC I wouldn’t be too thrilled about the current situation, so I am pretty sure with almost 60% of the cap table held by 20 shareholders, that a reasonable number can be taken out fairly easily and possibly even on the cheap. I mean, let’s face it, what is the point of being a “public company” when you are essentially under the control of an individual, it sort of defeats the purpose doesn’t it? Why don’t you guys take the company down for a while so you don’t have to waste $100k a month on being a public company – at the very least de-list so you don’t have to bother us with your pointless news flow anymore. Do something useful with the $10m (if you can) and if you manage to show that you are capable of accomplishing a scientifically meaningful outcome, maybe come back and see us again.

Ok?

Oh, and Richard? I had meant to previously pass comment on your ABC piece back in July. Yes, it is tough for Australian biotech companies to raise seed funding. Why? Because investors look at completely ridiculous and wasteful companies like yours, and they get turned off the whole sector. You’ve now raised $50m (net of fees and underwriter and sub-underwriter commissions) and you’ve delivered precisely nothing. And you never will.

On behalf of all the rest of Australia’s biotech entrepreneurs, thanks a bunch.

12 thoughts on “A big idea for Phylogica…

  1. Are you serious? This company is like a monopoly on a diamond mine! I know it because they told me it. We just have to be patient. In the long run it will all be fine. Unfortunately, in the long run we are all dead.

    Seriously though, you are quite right. This is another company with Dr. Washer’s fingerprints on it. Seems like there is a bit of a theme of failure with all of his companies.

    Would be a ideal candidate for that interconnected chart you had up a while ago.

    As for PYC, its future lies in the bottom of a bed pan. Someone should push flush.

    Like

  2. “Because investors look at completely ridiculous and wasteful companies like yours, and they get turned off the whole sector.”

    Aint that the truth.
    Would be Investors have had no idea of detecting one spin from another.They all sound groundbreaking and revolutionary to us.
    That is till you came along and decoded the rhetoric for us.
    Now, we need a whistleblower in the mining and tech specs, and just then maybe the asx will become a safe harbour and playground for Mum and Dad savings.
    Cheers

    Like

      • I’ve been on a course so sorry for late reply. I have only recently been receiving your emails and everyone seemed very negative. I haven’t had an opportunity to troll through all your previous posts so it was just a quick question written in haste to see what companies you thought were good ones. Nothing else intended, but can see how maybe you thought I was being sarcastic or something which was not the case. I will have to make time to read through all the posts on your forum and see what I can find. Have a good weekend.

        Like

      • No drama. You make a fair point – I will try to do a few more positive ones. At the end of the day, though, the purpose of this site is not to spruik sticks but to provide a counterweight when claims are not warranted. That, by definition, tends to result in a timbre that is a bit more negative.

        Thanks for reading.

        Like

    • There are some decent ones. VLA, PXS, CIR, UBI, IPD, NAN, SRX…. some expensive, some not. But very small selection… reminds you of grocery store during communism

      Like

Say something useful (or at least interesting)...

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s