IMHO, the best part (ouch!) is on page 3:
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Neither you nor the Nabi management team has earned the right to unilaterally
embark on another multi-year program that puts shareholders at significant risk
and is unlikely to yield results, positive or negative, within an acceptable
timeframe. Both current management and the majority of the Board have presided
over a virtually unbroken string of missed earnings estimates, failed
milestones, trial failures, etc. Mr. McLain has continually trumpeted a new era
for Nabi since taking over as CEO three years ago. Sadly, all shareholders have
gotten is "more of the same," while Mr. McLain has, during his tenure, managed
to foster poor relations with several other management teams in the industry
that we are aware of - to the detriment of Nabi and its shareholders (indeed,
the CEO of a much-larger biotech company took the unheard of action of singling
out Nabi at a recent industry conference for being "mismanaged" - apparently
because of the low regard he has for Mr. McLain and his managerial abilities).
Unfortunately, the Nabi Board is no better. Of the eight Nabi Board members,
only one has seen NABI stock rise during his time on the Board, and then by a
paltry cumulative 7% over 5 1/2 years. Put differently, the eight Nabi directors
have served an average of 6 1/2 years on the Board, and the stock is, on
average, down 35% during their tenures. Of the public companies that the current
Nabi directors have been involved with, either as senior managers or directors,
the overwhelming majority have been significant money losers for the
shareholders of those companies during their tenures - some of them
spectacularly so. Suffice it to say that Nabi has added two Board members over
the past year. One is CEO and President of a company whose stock is down over
85% in the less than one year that he has run that company, and now has a market
capitalization of $60 million. The other was CFO of a company whose stock
declined during the 11 years that he was at the financial helm, and which now is
also in the micro-cap arena. It is especially alarming that this is the pedigree
of the people that Nabi is bringing on board to safeguard our interests, and the
type of people whose business judgment the Company is acting upon. They have not
been successful in creating value for shareholders at their "day jobs," and
there is no reason to believe that they will have any better success at Nabi.
Although we do not believe in your latest strategic plan anyway, given the
substantial risks and timeframe to which it exposes shareholders, we are even
more negative about it in the hands of a management team and Board of Directors
at Nabi that has a demonstrated record of virtually always destroying value for
shareholders as either management or board members.