Ann: SUDA Signs Agreement With Mitsubishi Tanabe, page-37

Hi all

Well another deal done.  Will the market like it?  My guess is no.

100k upfront means the buyer has very little skin in the game so to walk away would be easy. 

The plus side is the credibility it bestows on Suda, but it does show we are still in a relatively weak bargaining position.  This could be due to the fact there are no patents protecting Zolpi and suitors only have first movers advantage.  The royalties though, are excellent.

I am troubled by the fact, despite the legth of time we have had the Eddingpharm and Teva deals done, we are yet to see a single milestone payment unless of course one has been paid and not announced by Suda.

As alluded to by a previous poster, Suda now needs to stitch all these deals together and give the market a proper and complete update including the expected income from manufacturing.  Also in the report we need to know how many deals are at what stage and an update on Artimist that is more than talks are continuing.

Whilst I may sound negative I am confident the sum of the parts will be compelling.

However, a lack of transparency on the two initial deals done, low upfronts, no milestones yet and no market information around exactly how much potntial income we have under contract will unfortunately continue to see the market penalise us and our share price under pressure.   In the end the current share price sits firmly at the Boards feet and it requires them to take a different approach to the past. Amongst that different approach, I would not be against not publishing guidence for when deals get done as that has been something that has driven our share price to its current levels.

In summary the management team continue to work hard and are establishing deals with large Pharma companies but we need a Company maker deal to really have the market take notice.

Otherwise it will see everything we do as smoke and mirrors in the absrnce of decent upfronts or any milestone paymemts.

But credit where credit is due, another deal to the pile, but there's a lot more work to be done.

Clyde