What kind of letter?
4 months ago I sent one re marketing/communication issues to the Chairman, CEO and CSO (former CEO), and I got a very condescending answer from the Chairman. As much as I am interested in RGS research and long-term commercial development, I thought the tone alone of this answer was proof that the current management doesn't take the SP and marketing/communication issues as seriously as they should.
The SP doesn't reflect the quality of RGS portfolio, but it does reflect the sentiment most of investors have towards the current management team.
When a company changes its strategy (from autologous treatments: AdiCell in dogs and HiQCell in Humans to allogeneic off-the-shelf medicine) it should be demonstrated this new strategy will improve the bottom line... IMO it showed those in charge of Animal Health and Human Health respectively had not been able to commercialise expensive treatments, missed their pricing/targets and partnerships strategies and in return opted for "entry price" off-the-shelf medicine with little data to back up results (efficacy) and volumes (sales potential).
Yes, long-term potential might be there but current management has failed and that's a major problem that most investors can see, hence the SP rock bottoming.
RGS Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
