The heavy lifting is done for Generex management, having achieved the goal of receiving shareholder approval to conduct a reverse stock split. With the vote now down in the history books, it's about that time to start looking to the future.
A big part of that future revolves around the spin-off of Generex's subsidiary company, Antigen Express, that is moving forward with AE-37, a cancer vaccine currently being tested in Phase II trials for use against breast cancer. Given that this product has been labeled as the 'centerpiece of the future' for Generex, it's worth following closely any developments related to the advancement of the Antigen Express pipeline.
Investors were promised in a recent conference call that they would receive a dividend of shares from the Antigen Express (AE) spin-off, once that action was undertaken, and statements made by management in a press release issued on Wednesday foretell that Generex is planning on following through with that promise:
"On March 30, 2011, Generex announced its intention to spinout Antigen Express, Inc. as a stand-alone public company and to provide Antigen Express stock dividends to the Generex stockholders following a reverse split of the Generex stock. That reverse stock split was approved by the Generex stockholders on June 8, 2011. Generex will provide further details of the Antigen Express spinout in the coming weeks."
Keep an eye out for updates, shareholders, specifically the date that will be used as the snapshot to identify investors eligible to receive the dividend.
Additionally, the company announced that Jos van der Woert has been appointed to act as Chief Executive Officer of Antigen Express, a man with stature and a solid reputation in the community:
"From 2003 to 2010, Mr. van der Woert was an executive with Schering-Plough Corporation, concluding his tenure there as General Manager and Group Vice-President, Global Oncology and Virology. From 2001 to 2003, he was Vice-President, Global Brand Management, Oncology of Pharmacia Corporation (acquired by Pfizer Inc. in 2003). Mr. van der Woert spent 17 years as an executive with Bristol-Myers Squibb Company. In 2010, Mr. van der Woert founded Oncologics LLC, a consulting firm providing strategic leadership and therapeutic experience to firms in the oncology field. During his tenure in the oncology field, Mr. van der Woert has been involved in, and led many successful global launches of oncology products and achieved successful partnerships and collaborations in the biopharmaceutical industry."
It looks like Antigen Express will be in solid hands with Mr. van der Woert, at a pivotal time for AE-37, which has been labeled with a current value of $300 million.
With the fiasco of 2010 and the failed vote for a reverse split in the rear view mirror, Generex CEO Mark Fletcher & Co. can proceed with the plans for the future.
The steps are being put in place and the new management team has, thus far, stood by their word.
Given the set backs with Oral-lyn advancement, the time frame for a commercial launch of any product has been pushed back a bit, but if GNBT can advance either of its products through successful Phase III, then the market potential is big.
Still worth keeping on the watch-list. Will look at possibly buying-in again on the back end of the RS.
Disclosure: No position.
