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pSivida article off the money

I WOULD like to take this opportunity to distinguish pSivida from the types of problems in moving to foreign exchanges as highlighted by Tim Treadgold in Briefcase (WA Business News, October 13). The issue for pSivida shifting to the US is not that we lose the advantage of being a big fish in our local industry, but that we gain the advantage of greater exposure to the US healthcare and investment communities that are critical to our business. Since listing on Nasdaq in January, the average volume of our American Depository Receipts traded has all but doubled every month and supporting our Nasdaq listing is key to generating shareholder value in the long term. With respect to the share price fall following the announcement of our planned acquisition of Boston-based drug delivery company, Control Delivery Systems (CDS), it needs to be placed in the context that the announcement was made in the middle of a market correction, the biggest since September 2001, and that it had to be released at that time under continuous disclosure obligations. The market is now becoming more aware of the value of the deal and the price is recovering. In terms of generating newsflow, pSivida has always received more press overseas than in Australia. Nano-biotechnology in the area of drug delivery is a very specialised field, and yet there are countless industry publi-cations that focus on this area in which we are regularly featured. Unlike other biotech companies, pSivida started with a business overseas and overseas shareholders including the UK government. Prior to the CDS acquisition, pSivida had more of its staff in the UK and was already 40 per cent foreign owned. Far from progressively fading from view, pSivida is about to shine. The planned acquisition of CDS will make pSivida perhaps the only revenue generating nano-biotech company in the world. The current revenue stream from CDS products is significant and expected to grow rapidly next year. pSivida’s first licensing deal for our BioSilicon drug delivery system is expected to be announced this year, together with the commencement of Phase IIb clinical trials for our liver cancer treatment and pSivida representatives will be in New York later this month ringing the bell at Nasdaq. With these, and lots of other exciting developments to announce, pSivida is definitely a company to watch with interest. Gavin Rezos managing director

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