Dominic Rodrigues'  Instablog

Dominic Rodrigues
Send Message
Pursuing entrepreneurship through corporate development and investment management, by raising, investing, developing and managing money across a range of activities that include board and advisory roles, portfolio management, private equity, trading, senior and start-up company management, and... More
My blog:
Connecting the dots...Provectus Biopharmaceuticals
  • The Provectus-Pfizer Relationship Grows 2 comments
    Sep 21, 2012 8:10 PM | about stocks: PVCT, PFE

    Taken From Connecting The Dots...Provectus Pharmaceuticals (September 21, 2012).

    Yesterday, a joint patent application between Provectus and Pfizer became public. The application was a broad combination therapy patent pharmaceutical and biotechnology companies typically file to cover actual and potentially effective therapy combinations. You may recall I blogged on this topic in January.

    The application is strategically important because Bristol Myers already has a broad combination therapy patent for its CTLA4 inhibitor ipilimumab, which competes with tremelimumab, the Pfizer drug of the same mechanism of action.

    In October 2011 AstraZeneca subsidiary MedImmune in-licensed treme from Pfizer. MedImmune assumed global development rights, while Pfizer retained rights for certain combination therapies. To put the backdrop of this in-license deal and the growing Provectus-Pfizer relationship in context, there are several events to consider chronologically:

    • The Australia melanoma conference occurred in November 2010,
    • Pfizer sought partners for treme in 2010 and 2011,
    • Dr. Eagle joined Provectus' corporate advisory board in August 2011, and
    • While the Provectus-Pfizer patent was filed in March 2012, its priority data date was October 3, 2011 (the same date, coincidentally, as the MedImmune PR).

    PV-10 was the only combination therapy of import Bristol Myers did not patent as a combination because, at the time of Bristol Myers patent filing, PV-10 was not on its and others radar screens. The Big Pharma company locked up all productive combinations as far as it was concerned.

    Provectus management -- knowing PV-10 and treme's respective mechanisms of action (as well as ipi's) -- saw the opportunity to link PV-10 to the Pfizer drug. As a result, Provectus locked up Pfizer should it decide to launch a treme combination therapy.

    There also has been much discussion about combining PV-10 and ipilimumab. We could learn more about this combination when Moffitt releases more data and results, which is inbound and, perhaps, imminent, and Craig speaks at the Society for Immunotherapy of Cancer Annual Meeting in late-October.

    Amgen's T-vec or OncoVex and Vical's Allovectin were among those caught in Provectus' combination therapy net. Imagine being scooped by "4 guys from Knoxville." Significant kudos are due Jaimie Singer on this and the synthesis patent applications, among other things she contributes to Provectus.

    So, as far as the relationship goes, we have:

    • A patent application filed in March 2012 and made public in September 2012, but likely worked on as late as Spring or Summer 2011, and possibly earlier (i.e., 1H11)
    • An industry-wide respected senior oncology executive (respected for both his technical and commercial acumen) in Pfizer's Dr. Eagle added to Provectus' corporate advisory board in August 2011 (i.e., 3Q11), and
    • A rumored $7 per share all cash bid for the company by Pfizer in Fall 2011 (i.e., 2H11).

    Anything else?

    Disclosure: I am long PVCT.

    Additional disclosure: I am a large shareholder of Provectus Pharmaceuticals. I have not sold any shares as of this Instablog submission.

    Stocks: PVCT, PFE
Back To Dominic Rodrigues' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • holydawn
    , contributor
    Comments (146) | Send Message
    Curious, based on PVCT's presentation and the stock's recent price fall to $.59, do you believe PFE will attempt to acquire them or just wait out the 30 months or so it will take to prove out phase 3 testing for its drug before doing anything? Also, I imagine when you went long on PVCT like others, you figured it would take awhile to see some positive results, so are you still LONG?
    9 Oct 2012, 10:46 AM Reply Like
  • Dominic Rodrigues
    , contributor
    Comments (12) | Send Message
    Author’s reply » The share price decline over the last month has not changed my investment thesis. $0.59 reflects market uncertainty caused by management's exploration of a preferred stock offering to list on the NASDAQ.


    Pfizer will wait as long as it has to wait; however, I do not think the wait will be the 30-month trial period. The waiting should end shortly after the interim analysis of half the contemplated patient population of the trial (or ~90 people).


    I have not sold any shares.
    9 Oct 2012, 07:15 PM Reply Like
Full index of posts »
Latest Followers

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.