I wonder if Adam Feuerstein is dancing in the street with this latest news regarding Generex Biotechnology (OTCQB:GNBT). While I am not a dancer, I do believe that this move by GNBT bodes well for its growth and shareholder confidence. As an investor, I never believed that the development programs were the greatest risk, but rather the management team.
Founders of start-up companies are often the limiting factor to a company's success, because they are entrepreneurs who have multiple ideas running through their minds and have difficulty focusing on achieving success in one element. The management team probably felt that Phase I and Phase II success of Ora-Lyn was enough to propel the company to great heights (or at least their pocketbooks).
While I believe press releases from the company have been truthful, the vagueness in those press releases were the reason why I believed outside individuals viewed the management team with disgust. Having met Ms. Gluskin at the ADA conference this past summer, her demeanor confirmed to me that she would not be able to lead this company to its greatest heights.
For me as an investor, my biggest complaint was the wasted effort on the swine flu vaccine. It was obvious that the development time frame was such that no revenues would ever be generated from the project. As the press release indicated regarding the removal of Ms. Gluskin: "We believe that a tighter focus on the company's core business is needed and we have determined that this can only be achieved under a new President and CEO".
Ora-lyn is the company's core business. From this all other business will flow.
Disclosure: Long GNBT