Winds of Change

If I was talented enough regarding web design to make this page open up with the Scorpians whistling away “Wind of Change” in the background… I surely would. Having followed the “Moskva down to Gorky Park”  in the middle of winter on many occasions, I can only try and do my best to send a warm vibe to you this morning …

This will be a mercifully short post, but just to express my genuine appreciation to all the shareholders that gave Benitec (ASX : BLT) and Novogen (ASX : NRT) a hard time at their AGM’s yesterday. There was some real dissent about company performance and remuneration, and it’s appropriate. It’s also extremely important. In truth it is not fair to lump the two companies together – Benitec is good technology at the wrong time, and Novogen is wrong technology at a good time – but in both cases, shareholders were right to challenge. I personally think it should have gone a bit further but there is little doubt that the correct message was sent.

It actually gives me hope that the quality of the sector can improve when this type of outcome happens. Well done!

I didn’t attend either AGM but I would welcome any perceptions or commentary on the events.

Photo cred : Wind of Change, Tom Stoddart. Iconic


8 thoughts on “Winds of Change

  1. I attended the NRT AGM and was pleased to hear shareholder dissatisfaction directed officially at the board. Although the vote was notionally a close run thing, it appeared the board had a good idea of the numbers before the meeting. Otherwise, they showed a remarkable lack of concern they were within a hairs breadth of being rolled.

    However, of greater concern to me were some of the comments/questions from shareholders that demonstrated an extraordinary lack of understanding of even the basic principles of biotechnology/pharmaceutical development cycles and dynamics of investing in this sector.

    Had I the inclination and platform, I would have commended the longtail to these investors so that they might educate themselves further of how this industry works. But alas, it would, I fear, be too little, too late for most.


  2. Actually, quite the opposite. There was a call to arms from some in the audience to make as many such announcements as possible in order to keep the market fully informed as to what the company was achieving and drive along the share price again like they used to.

    The interim CEO/Exec Chair was very clear that NRT would not be making such preclinical announcements. He suggested they might be construed by the ASX as market manipulation (!?) and suggested potential pharma partners might take a dim view of such announcement.

    Wonder where that idea came from?


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