PHILADELPHIA, Feb. 29, 2012 /PRNewswire/ -- George Bessenyei, Robert S. Goggin and Gregory V. Novak (the "Concerned Vermillion Stockholders" or "Group") on February 15, 2012 submitted to the Corporate Secretary of Vermillion, Inc. (Nasdaq: VRML) their notice of their intent to nominate two proposed directors to the board of Vermillion for election at the Vermillion 2012 Annual Meeting of Stockholders (the "Annual Meeting"). The nominees are Gregory V. Novak and Robert S. Goggin. Both of these individuals are experienced investors, highly skilled in effective management, and long term stockholders of Vermillion. Gail S. Page ("Page"), the CEO of the company, and John F. Hamilton ("Hamilton") currently hold the two board seats that are scheduled to be elected at the upcoming Annual Meeting. The Concerned Vermillion Shareholders seek to replace Page and Hamilton as directors with Mr. Novak and Mr. Goggin.
"It is time for change and a fresh start. As we have all painfully witnessed, the company is on a downward spiral to certain self-destruction in the front of our eyes, plagued by gross mismanagement. Page and Hamilton have alternatively sat idle or actively caused a monumental damage to stockholder value; Vermillion's stock price has declined over 90% over the past two years. At the same time, these individuals collected $5.8 million combined in compensation as ostensible reward for this massive annihilation of value.
The next chapter of the Vermillion story should be written by honest and capable persons, such as Robert S. Goggin and Gregory V. Novak. They will press for the necessary changes, and obliterate the self-serving policies and tactics that have eroded stockholder value. It is time to unlock the potential of Vermillion's assets.
Vermillion's OVA1 test has unmatched sensitivity and has already saved countless lives. The 15,000 tests sold in 2011 with a $650 list price have the potential of generating $10 million in revenue, once the reimbursement issues are ironed out. Even a conservative valuation based on existing levels of sales of OVA1 should place its value in the range of $50 million (or $3.35/share). Any future growth will simply provide upside to that.Vermillion's other product in the pipeline, the Peripheral Artery Disease (PAD) test, addresses a minimum $1 billion market opportunity, yet it is largely ignored by the investment community. Any other company, having such a blockbuster test in an advanced stage of development, would be valued north of $100 million (or $6.71/share), but the market is unwilling to put its trust in current management given their historic performance. Simply put: the sum of all parts is likely 10 times higher than the current market capitalization of Vermillion, creating a unique opportunity for a turn around that can truly benefit shareholders.