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DBL%20Hendrix%20small.png College chemistry, 1983

Derek Lowe The 2002 Model

Dbl%20new%20portrait%20B%26W.png After 10 years of blogging. . .

Derek Lowe, an Arkansan by birth, got his BA from Hendrix College and his PhD in organic chemistry from Duke before spending time in Germany on a Humboldt Fellowship on his post-doc. He's worked for several major pharmaceutical companies since 1989 on drug discovery projects against schizophrenia, Alzheimer's, diabetes, osteoporosis and other diseases. To contact Derek email him directly: derekb.lowe@gmail.com Twitter: Dereklowe

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In the Pipeline: Don't miss Derek Lowe's excellent commentary on drug discovery and the pharma industry in general at In the Pipeline

In the Pipeline

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July 15, 2013

The Red Queen's Race For Funding

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Posted by Derek

Using Michael Kinsley's definition of a gaffe, as when a politician or spokesman accidentally tells the truth, I think we can put this one firmly in that category. Novogen, a small Australian company that's been though some ups and downs (mostly downs) recently raised several million dollars to continue operations. But this line in the CEO's letter to shareholders is, well. . .

". . .we need the funds to create the news flow in order to achieve market appreciation so that we can progressively raise the funds to support ongoing news flow."

There must have been a better way to phrase that, something about "making the investment community aware of the company's potential", etc. But there you have it: they're raising money to create publicity so that they can raise more money for more publicity. Their recent failure with phenoxodiol was not completely unexpected, given that the compound had been in the clinic before without success.

Thanks to this writer at the Motley Fool for picking up on this.

Comments (6) + TrackBacks (0) | Category: Business and Markets


COMMENTS

1. Erebus on July 15, 2013 9:21 AM writes...

Seems to me that he just used this:

http://cbsg.sourceforge.net/cgi-bin/live

And didn't double-check it before hitting the 'send' button.

Permalink to Comment

2. BuyersStrike! on July 15, 2013 10:36 AM writes...

At least they are being honest. Their actual business is selling shares. A lot easier than actual drug development. Just ask Joe P at Repros, or Jim Bianco at Cell Therapeutics.

Permalink to Comment

3. hn on July 15, 2013 5:14 PM writes...

Professors and CEOs think alike.

Permalink to Comment

4. eugene on July 16, 2013 6:06 AM writes...

It's a variation on the popular:

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy."

Permalink to Comment

5. cliffintokyo on July 16, 2013 7:32 AM writes...

Just wanted to say how much I like the title of this post!
BTW: Do they teach how to write in English in Australian schools?

Permalink to Comment

6. cliffintokyo on July 16, 2013 7:35 AM writes...

Just wanted to say how much I like the title of this post!
BTW: Do they teach how to write in English in Australian schools?

Permalink to Comment

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