FYI | May 18 2006
By Rudi Filapek-Vandyck
The appointment of Peter Smith as director of commercialisation at Alchemia (ACL) hasn’t prevented the company’s share price from shedding more than 2% on the stock market today.
Smith has an outstanding reputation in the healthcare and biotechnology sector and equally among securities analysts for his achievements while he was managing Amrad (nowadays Zenyth Therapeutics (ZTL). Smith left Amrad through a shock resignation during the company’s board meeting on May 20 last year and hasn’t said a word in public about it ever since.
Industry sources told FN Arena News differences with the board about the strategic direction of the company lay behind the decision.
Smith’s reputation and influence at Amrad were believed to have expanded into the whole sector by then. Southern Cross Equities’ biotech guru Stuart Roberts commented at the time: "If there’s one thing three years of covering Australian biotechnology has taught this analyst, it’s the importance of good management in the creation of shareholder value".
Roberts later introduced the terms Amrad BP and Amrad PP (before Pete and after Pete) to mark the difference in management at the company.
Now Peter Smith is back at Alchemia with ABN Amro Morgans’ analyst Scott Power quick on his feet to state "Smith is well known to us and we hold him in high regard".
In the eyes of Power, Smith’s appointment "builds the commercial strength of the company and given ACL’s innovative platform technology a number of leads are being generated which present as licensing opportunities".
When asked about the announcement today, Stuart Roberts send us an email stating: This is the best thing to have happened to Australian biotech since Alchemia CEO Tracie Ramsdale mortgaged her house to help fund the company. Alchemia is definitely in the winner’s circle now, with far and away the most talented biotech management team in the country.
Amidst a generally weaker share market, Alchemia shares lost 2.24% (3 cents) to close at $1.31.