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$PVCT's Prospective #China #Pharma Partner Is...

Feb. 15, 2013 1:51 PM ETPVCT, PFE, IMNN
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Taken From Connecting The Dots...Provectus Pharmaceuticals (February 13, 2013).

Regular readers of this blog know of my belief that Pfizer ultimately will be the end-game acquirer of Provectus. I have long held, even before I began writing this blog in November 2012, that Pfizer is the most natural and logical of the Big Pharma to acquire the company. It's not a given by any stretch, but I think Pfizer is the leading candidate and then some at this point in time.

Thus far, the two public Pfizer data points are a joint patent application filed by Provectus and Pfizer in March 2012, and the addition of Pfizer's Dr. Eagle added to Provectus' corporate advisory board in August 2011. There are several other data points one can learn about while doing due diligence on the company.

It appears, the latest datapoint has been staring me in the face for a little while.

We know Provectus is currently interacting with potential partners for regional licensure in China, India and Japan, according to recent Craig's Noble presentation. I have written about a China deal somewhat ad nauseam.

Moffitt has to educate the global oncology community about PV-10's clinical relevance. Provectus has to obtain the SPA. And, the company has to get valuation way up through, for example, a sizable regional license deal like in China. From there, and with interim MM Phase 3 trial data, enough boxes may be checked for Pfizer (or another Big Pharma company) to take Provectus out.

If I am Pfizer (Dr. Eagle) and want to keep a close tab on the company, or just keep the company close, I steer them to a friendly in China rather than let Provectus partner up with a Chinese pharma company with whom I have no relationship or that has a relationship with one of my Western competitor. Just saying...

Who are Pfizer's partners in China? Which one of them is the potential or a more likely prospective Chinese strategic partner?

A. Sinopharm Group? Pfizer and Sinopharm appear to have begun collaborating in 2012.

B. Shanghai Pharmaceutical Co.? Pfizer and Shanghai Pharma, in whom Pfizer also invested, begun working together in 2011.

C. Zhejiang Hisun Pharmaceutical? The Pfizer-Hisun relationship may have begun as early as 2010. In early 2012, Pfizer and Hisun announced progress on a potential joint venture ("JV") between the two companies. In late 2012, Pfizer and Hisun announced the launch of the JV. Pfizer indicated the JV also would include "medicines to China to address the country's unmet healthcare needs."

D. Someone else?

Follow the money; that is, the relationship into which Pfizer put more money. Shanghai or Hisun? Investment or working relationship or both? The most invested and substantive relationship Pfizer has in China appears to be with Hisun. If I think Pfizer ultimately will acquire the company, it seems to me consistent to then think Hisun could (will?) be a (the?) potential pharma partner for Provectus in China.

Now, if the partner is Hisun-Pfizer Pharmaceuticals Co., the JV...well, that's a more interesting data point.

Disclosure: I am long OTC:PVCT.

Additional disclosure: I am a large shareholder of Provectus Pharmaceuticals, have not sold any shares as of this Instablog submission, and also author the blog "Connecting the dots...Provectus Pharmaceuticals."

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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