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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
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NORTHFIELD LABORATORIES INC.
(Name of Registrant as Specified in its Charter)
C. ROBERT COATES
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(Name of Person(s) Filing Proxy Statement if other than the Registrant)
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[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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3) Filing Party: C. Robert Coates
4) Date Filed: July 09, 2002
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Press Release
Source: C. Robert Coates
Coates and Williams Challenge Northfield's CEO and Directors in Proxy Contest
Lake Forest, IL, July 9, 2002 -- For the first time ever, Northfield's (NASDAQ:
NFLD) shareholders have the opportunity to actually choose two of their own
directors:C. Robert Coates and Bert Williams. Coates personally owns 644,200
shares purchased at an average price of $14.95. He began buying these shares in
May of 1998 and has held his shares for an average of 3.5 years.
DeWoskin Gets a Failing Grade from the FDA; Shareholders Pay the Price
C. Robert Coates said, "We believe that Northfield's PolyHeme is technologically
superior to every other blood substitute.But having the best product is never
enough, as Dick DeWoskin, CEO of Northfield, has proven yet again. We are
extremely disappointed by DeWoskin's failure to even get to first base with the
Food and Drug Administration (FDA) and by the subsequent decline in price from a
high of $21.25 on August 17, 2001, to a new all time low of $3.60 on July 3,
2002. These low share prices tell us that DeWoskin now has zero credibility
with Northfield's shareholders and the FDA.
"Northfield announced it filed its Biologic License Application (BLA) with the
FDA on August 28, 2001. But then on November 19, 2001, Northfield announced
that the FDA issued a 'Refusal to File' letter. That means that there were
obvious, severe flaws in their application. Nearly eight months have gone by
since the FDA refused to review Northfield's application and there is still no
resolution. Dick DeWoskin has still not provided shareholders with any
information about the FDA letter or on Northfield's progress towards resolving
the issues raised in the letter."
Northfield Needs a New CEO and Money Now
"Northfield needs more money, and it needs a CEO who can get the job done for
the shareholders. We think the only way to remedy the present situation is to
partner with a major pharmaceutical firm on terms satisfactory to shareholders.
In addition to infusing much needed capital into the company before it runs out
of money, this pharmaceutical company would provide Northfield with an
experienced CEO and the marketing and manufacturing expertise that is missing."
How Much Would a Major Pharmaceutical Company Invest to Partner with Northfield?
"We believe that several major pharmaceutical companies would be more than happy
to work with Northfield if Dick DeWoskin agreed to step down as CEO after they
made a major investment. We believe that Dick turned down an offer of $30-35 a
share in 1996 from a major pharmaceutical company. We believe that even
todayNorthfield - minus DeWoskin - could sell 3,000,000 new shares to a major
pharmaceutical company for $20 a share.
"Why would a major pharmaceutical company pay $20 a share to partner with
Northfield when the stock is selling for less than $4.00? Because they can't
buy it in the open market without announcing their intentions and driving
the price much higher. Also, Northfield's poison pill protects DeWoskin
and the directors behind their wall of silence and makes it impossible
for any company to acquire a large number of shares without DeWoskin's
approval."
How Much Is Northfield's Stock Worth without DeWoskin?
"What is Northfield's stock really worth without DeWoskin and with a new CEO who
can get the job done for the shareholders? Just look at the numbers. DeWoskin's
announcement that Northfield was filing with the FDA and asking for fast track
review and approval lifted Northfield's share price to $21.25 on heavy volume on
August 17, 2001. Then the FDA's refusal to review the BLA coupled with the
uncertainty created by DeWoskin's no news policy drove the price much lower.
Short selling, probably by one or more hedge funds, placed even greater downward
pressure on the stock price. The short interest increased from 182,231 shares in
July 2001 to 1.2 million shares in June 2002. That's a huge short interest for a
stock that trades only a few thousand shares on many days. DeWoskin let the
short sellers have a free hand by staying silent. No news at Northfield is not
good news. Then DeWoskin refused to address issues raised by Adam Feuerstein in
his article titled 'Northfield's Game Plan Remains a Mystery'. The stock plunged
49.7% from $8.01 a week before the article was released to $4.03 just a few
weeks later."
Studies Show It Costs $500 to $800 Million to Bring a Major New Drug to Market
"How much is Northfield's PolyHeme worth? Last year the market said it was
worth $20 a share just on the basis of the filing and the possibility of
approval. But there's still another way to look at this. According to several
studies, the costs of bringing a major new drug or biologic through Phase III
and gaining FDA approval range from $500 to $800 million. No one we've talked to
doubts the safety and efficacy of PolyHeme. It only remains for Northfield to
properly demonstrate this to the FDA. So these studies suggest that Northfield
shares could be worth between $36.75 and $56.08 on a cost basis once PolyHeme is
approved."
Don't Let Today's Low Stock Price or the Short Sellers Fool You: Northfield's
Product Can Save Lives and Has Huge Commercial Potential
"With the right management, Northfield's product has tremendous potential, both
to save lives and to provide shareholders with above average returns on their
investments. PolyHeme has no competition in the trauma market. Moreover, our
armed forces and Homeland Security agencies will need to stockpile blood
substitutes, just as they are now stockpiling key vaccines and medicines."
Call Us or E-Mail Us at The Robert Coates Group
If you are a shareholder and have any comments, suggestions or questions, please
call Simon Goldberg of The RobertCoates Group at 1-800-295-0841, extension 240
or email us at sgoldberg@rcoates.com
Source: C. Robert Coates