CBD
It was a case of where are the main players, after the competition watchdog gave permission for Virgin to consummate its hook-up with rival budget airline Tiger.
Australian Competition and Consumer Commission chairman Rod Sims (pictured) was on the other side of the world at an annual gathering of about 100 competition tsars over pierogi, kielbasa and vodka in Poland.
Virgin boss John Borghetti was getting on a plane after annual holidays to an unknown destination - we presume Hong Kong.
It meant CBD couldn't ask him who was the external candidate with domestic aviation experience to whip troubled Tiger Australia into shape.
There's plenty to do: the airline has suffered from a terrible public image, including strife with the safety regulator.
If Qantas chief executive Alan Joyce, who has plenty of experience running budget airlines, gets sick of running the Australian feeder for Emirates, perhaps he could jump ships to partner his former workmate.
Bad PR is good
It may have been banned by sporting authorities, but ordinary Americans could soon be chowing down on AOD-9604, the anti-obesity drug that controversial sports scientist Stephen Dank allegedly injected into AFL and NRL players.
Metabolic Pharmaceuticals, which owns the drug, says US authorities are close to approving it for general use in food.
Chief executive David Kenley told CBD AOD-9604 was already available over the counter in Australia as the active ingredient in a cosmetic cream called Bodyshaper.
He also criticised the World Anti-Doping Agency, which on Monday night banned AOD-9604 from use by athletes.
Kenley said the product was close to receiving a "generally recognised as safe" (GRAS) designation from the US Food and Drug Administration, which would allow it to be added to food.
He said the drug had undergone extensive testing that "tells us that AOD is profoundly safe" and it should be able to qualify for GRAS recognition once the company published existing test results.
Once recognised "it would be absolutely legal and ethical in the US to add the product to food, snack bars - it could go into drinks, skinny water," he said.
He said WADA's ruling created a confusing grey area that would be a field day for lawyers.
"While the WADA code talks about a therapeutic agent, it doesn't talk about a cosmetic agent or a food agent," he said.
Metabolic is a subsidiary of ASX-listed biotech Calzada and was set up to commercialise AOD, which Kenley said was "a peptide that's modelled on one fragment of human growth hormone".
While human growth hormone is an effective anti-ageing drug, it has horrible side effects, including diabetes and cancer.
"AOD has the positive aspects of human growth hormone ... without any sign of any side effect whatsoever," Kenley said.
After spending $50 million on the drug, Calzada stopped developing it in 2007 after a large human trial failed to show it worked in tablet form.
The company later decided to give the drug another go after discovering athletes, gyms and fat people were paying up to $US30,000 a gram for it in injectable form on a booming black market.
He said Calzada was now hoping to find a big pharma partner willing to spend the millions needed for a phase three human trial, most likely with a focus on the drug's potential to treat osteoarthritis.
"The general consensus in the market has been that AOD-9604 is absolutely safe, but it just doesn't work.
"Well all this coverage by WADA and ASADA [Australian Sports Anti-Doping Authority] logically should tell everyone that AOD-9604 does actually work."
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bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
The article reports that the Australian Competition and Consumer Commission (ACCC) gave permission for Virgin to go ahead with its deal to combine with rival budget airline Tiger Australia. The piece describes the merger being allowed to proceed and notes key executives were unavailable for questions at the time.
The story names Virgin boss John Borghetti and ACCC chairman Rod Sims as central figures: Borghetti was travelling after holidays when the approval came through, and Rod Sims was overseas at the time. The article also mentions Qantas chief executive Alan Joyce as a veteran of running budget airlines and floats the idea he might be a candidate to help run Tiger Australia — a speculation investors may watch as leadership changes can affect airline turnarounds.
According to the article, Tiger Australia has suffered from a poor public image and publicly reported strife with the safety regulator. Those reputational and regulatory issues are key operational risks investors would typically monitor after a merger.
The article speculates that Qantas CEO Alan Joyce, who has experience running budget airlines, could potentially be a candidate to help turn around Tiger Australia. This was presented as tongue-in-cheek speculation rather than a confirmed development, so investors should treat it as informal commentary rather than a factual plan.
AOD-9604 is described in the article as an anti‑obesity peptide modelled on a fragment of human growth hormone. The World Anti‑Doping Agency (WADA) has banned AOD-9604 for athlete use, while Metabolic Pharmaceuticals (a company commercialising the drug) says US authorities are close to granting a 'generally recognised as safe' (GRAS) designation that would allow the ingredient to be added to foods — a claim reported in the article as the company's position.
The article states Metabolic Pharmaceuticals, a subsidiary of ASX‑listed biotech Calzada, owns AOD-9604 and is pushing for wider commercial use. Chief executive David Kenley said the ingredient is already used over the counter in Australia in a cosmetic cream called Bodyshaper and that the company hopes a GRAS recognition in the US would allow it to be added to foods and drinks. Calzada previously spent about $50 million developing the drug but halted development in 2007 after a large human trial failed to show efficacy in tablet form.
The article reports conflicting points: Metabolic's CEO claims extensive testing shows AOD-9604 is 'profoundly safe' and it is already used in an Australian cosmetic. However, the article also notes a large human trial failed to show it worked in tablet form, and WADA has banned it for athletes. Calzada is seeking a pharma partner to fund a phase‑three human trial — indicating further testing is considered necessary to prove efficacy for medical claims like treating osteoarthritis.
Based on the article, investors might monitor (1) post‑merger integration at Virgin and Tiger Australia, leadership appointments, and any regulatory or safety developments that affect the combined airline's reputation and operations; and (2) regulatory milestones and clinical developments for AOD‑9604 — notably any GRAS decision from US authorities, publication of existing test results, and whether Calzada/Metabolic secure a pharma partner to fund a phase‑three trial. These events could materially affect the companies mentioned.
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