By Dr. Athanasios Ioannis Kyriazis

“EXCEPT THE BLIND FORCES OF NATURE, NOTHING MOVES IN THIS WORLD WHICH IS NOT GREEK IN ORIGIN.” –SIR HENRY SUMNER MAINE, 1875, FAMOUS BRITISH HISTORIAN

This article will raise several key points about 20th century history. It makes the point that but for European, Russian, American, EU, UN & League of Nations actions taken negligently and/or intentionally, and in direct abrogation of international law, against Greece and its sovereign interests, Greece would be a far, far larger, far richer, and far more populous country than it is today. Greece today is on the brink of financial crisis not due to its own mistakes, but due to the arrogance and indifference of the larger powers which denied its destiny to be again what it was supposed to be—a second Byzantine-Greek Empire with a capital at Constantinople spanning two continents and five seas as was originally negotiated and settled by Venizelos at the Versailles treaty table after World War I and consummated in the Treaty of Sevres in 1920. That Greek Empire today would have approximately one hundred forty-sixty millions population and would be one of the most powerful countries on earth, as well as one of the richest.

THE EASTERN ROMAN EMPIRE AT ITS GREATEST EXTENT UNDER JUSTINIAN; JUSTINIAN'S CODE IS THE BASIS OF MODERN EUROPEAN CIVIL LAW IN THE EU

I. THE UNITED NATIONS, ENGLAND, THE MAJOR EUROPEAN POWERS, THE UNITED STATES AND TURKEY OWE GREECE AND CYPRUS REPARATIONS AND DAMAGES FOR THE TURKISH INVASION OF SOVEREIGN CYPRUS AND THE DAMAGES SUFFERED BY THE GREEK MINORITY IN CONSTANTINOPLE SINCE 1955 OVER THE CYPRUS ISSUE IN VIOLATION OF THE TREATY OF LAUSANNE

In 1975, Turkey was allowed to invade Cyprus not once but twice, eventually appropriating approximately forty per cent of the land, killing hundreds of thousands, and expropriating billions of dollars in property holdings belonging both to Cypriot and ethnic National Greek citizens in Northern Ethnic Cyprus.

The invasion, and the continued illegal military occupation and Turkish colonization program of settling Turks from the mainland and passing them off as “Turkish Cypriots” for the past thirty-five years, continues to be illegal and condemned repeatedly by international law and United Nations resolutions.

STAMP MEMORIALIZING THE VICTIMS OF NORTHERN CYPRUS AT THE HANDS OF TURKISH AGGRESSION 1975-2010; NORTHERN CYPRUS STILL ILLEGALLY OCCUPIED

Cyprus was only created as an independent state in 1960 after many years of Greek national lobbying for “enosis” or union of Cyprus with Greece. Cyprus was offered to Greece in 1915 as part of the spoils of World War I by England, but England breached that agreement at the Versailles Treaty table and retained Cyprus as a mandate and colony.

In retaliation for the enosis movement, Turkey forcibly expelled nearly 200,000 ethnic Greeks living in Constantinople lawfully entitled to reside there pursuant to the Treaty of Lausanne, first in a series of purges executed in 1955, and in a second round of purges in 1964, followed by the closing of the Halki school of Theology in 1971 and other acts directed at the Greek minority of Constantinople protected by the International Treaty of Lausanne.

Greece is entitled to damages with interest from 1955. Those are in the billions of dollars. Those are due them from France, England, the US and the UN’s failure to act to remedy the Turkish depredations to the Greek minorities of turkey since that date. For this reason alone, Greece is entitled to have not only its debts forgiven, but is entitled to war and treaty reparations and damages in the hundreds of billions of dollars.

This issue was discussed in great detailed in acclaimed novelist Jeffrey Eugenides prize-winning historical novel, MIDDLESEX (2001);

Thus we meet Desdemona Stephanides, who with her husband flees the Turks in Smyrna in 1922 and arrives in Detroit, where she has cousins. Desdemona, a formidable creature, has the habit of fanning herself when she gets angry or excited. “To anyone who never personally experienced it, it’s difficult to describe the ominous, storm-gathering quality of my grandmother’s fanning,” says Calliope, her granddaughter and the book’s narrator. And Desdemona’s fans, it should be said, are eccentric: “the front of the fan was emblazoned with the words ‘Turkish Atrocities.’ Below, in smaller print, were the specifics: the 1955 pogrom in Istanbul in which 15 Greeks were killed, 200 Greek women raped, 4,348 stores looted, 59 Orthodox churches destroyed, and even the graves of the Patriarchs desecrated.” Again, it is not only the verve of the writing that appeals, but its exactness. The idea of an “atrocity fan” is wonderful enough, but Eugenides’s real talent lies in the detailed coda to this passage: “Desdemona had six atrocity fans. They were a collector’s set. Each year she sent a contribution to the Patriarchate in Constantinople, and a few weeks later a new fan arrived, making claims of genocide and, in one case, bearing a photograph of Patriarch Athenagoras in the ruins of a looted cathedral.” This is the kind of detail that makes narrative.

review at http://www.powells.com/review/2002_10_03.html

England, France and the other great powers of Europe, along with the League of Nations, the predecessor to the UN, are guarantors of the Treaty of Lausanne. As in this treaty has been breached repeatedly by the Turks due to the depredations suffered by the Greeks, and the treaty guarantors have failed to act and are in breach, they owe Greece monetary damages. Greece is entitled to injunctive relief and monetary damages. At a minimum, they are entitled to damages from Turkey, England, the EU, the UN, the US, and a new regime of minority legal rights from Turkey, including a new rider to the Treaty of Lausanne allowing them up to 3 million resident ethnic Greeks and newly expanded Patriarchate rights in Constantinople.

HOW ASIA MINOR WAS SUPPOSED TO BE PARTITIONED AFTER WWI UNDER THE TREATY OF SEVRES & VERSAILLES (1918-1920) - GREECE, ARMENIA, KURDS ALL GET PORTIONS OF ASIA MINOR

CF http://en.wikipedia.org/wiki/Treaty_of_S%C3%A8vres

It should be pointed out that in addition to partitioning the Ottoman Empire and Asia Minor proper, the Treaty of Sevres also provided for the holding of the so-called “Malta Tribunals,” which were to punish Turkish war criminals for acts of war crimes committed from 1914 onwards, specifically, acts of genocide and war crimes directed at christian minorities, such as Armenians and Greeks.

cf http://en.wikipedia.org/wiki/Malta_Tribunals

These tribunals were, in fact, never held, but the fact of the armenian and greek genocides were recognized and the machinery put in place to try the Turkish war criminals as early as the Treaty of Sevres. Indeed, these provisions were later copied by the US at the Nuremberg trials. However, it was the Allies failure to punish the Turks after WWI that let Hitler famously to comment, “who remembers the Armenians” in pursuing his genocide against the Jews of Eastern Europe. In this, Hitler specifically referred to the failure to carry out the provisions of the Treaty of Sevres regarding the Malta Tribunals.

Greece is owed indemnity for this as well. My own grandmother was witness to the senseless butchery of thousands of armenians in her own village, many of whom were defenseless citizens machine gunned down and buried in mass pits, while she also lost three older sisters to the ravages of the Turks. The Terrible Turks.

The Obama administration opposes the current house resolution declaring the Armenian Genocide of 1915 to have existed. Nancy Pelosi killed it when she was house speaker. Just to show I’m being bipartisan, so too did Speaker Denny Hastert of the Republicans kill it back in the 1990s, allegedly after receiving a suitcase of more than $1 million dollars from a Turkish lobbyist (it may have been from Hill & Knowlton). Nancy Pelosi and several other are also alleged to have received substantial cash bribes to change their votes from the Turkish lobbyists as well, but much of this is urban legend and myth.

Getting back to our narrative, of course, enosis was not granted because Cypriot independence was guaranteed by England in 1960. That independence lasted fifteen years, while Turkish invasion and slavery over half the island of Cyprus has lasted more than 35 years.

Turkey invaded Cyprus in 1975, marking very nearly the 400th anniversary of their original Ottoman invasion and conquest of Cyprus in 1570. This was an outrageous act of aggression and the first sign of the Islamic radical agenda to emerge in the modern era which culminated three years later in the Iranian Revolution, the Iranian funding of Hamas and the eventual destabilization of Lebanon. This was all the beginning of a program to de-Christianize the Middle East and depopulate it of westerners and Christians, a program which has culminated in the 9/11 bombings and the program of renewed neo-pan-Turkism, neo-pan-Islamism and neo-pan-shi’ism, together with the scourge of radical Islam, radical anti-Semitism and radical anti-Americanism/radical anti-European sentiment now dominating not only Turkey but all of the middle east from Lebanon to Palestine to Afghanistan, Pakistan and Malaysia.

Regarding the invasion of Cyprus proper, England, the United States, the major European Powers, the UN and the EU, all owe Greece and Cyprus monetary reparations, damages and injunctive relief for the original invasion and all consequential damages. England, because Cyprus was a Commonwealth nation, and England guaranteed Cypriot independence after 1960 pursuant to treaty, by military means if necessary, and England is in breach of that treaty, owes Cyprus and the Greek Government damages for breach of that treaty.

Those damages are in the trillions of dollars, together with owing Greece, Cyprus and their people land and territorial compensation from the Turkish territories in compensation, along with reparations and damages from Turkey.

II. YUGOSLAVIA, BULGARIA, ROMANIA AND THE USSR, TOGETHER WITH THE EU, OWE GREECE DAMAGES FOR THE GREEK CIVIL WAR AND THE GREEK COMMUNIST PARTY OVER THE PAST FIFTY YEARS PLUS

The Eastern European nations which conspired actively with the USSR to fund the Greek Civil War from 1944-1948, as well as the funding of the Greek Communist Party and the left-wing Andreas Papandreou movement of the 1980s, which was a pro-Communist USSR-sympathetic government masquerading as a left-wing government (Papandreou was an out and out Marxist-Leninist communist in full sympathy with the USSR and an ardent anti-American) were fully and completely facilitated by the major European nations, the US and the UN.

To some extent, the US and CIA ameliorated these problems thru the Truman Doctrine, the Marshall Plan and active CIA involvement in Greece against the left-wing insurgents, but the root of the problem, the Greek expatriate communists living in the Eastern European Communist countries, propagandizing and funding these communist and left wing movements in sovereign Greece, have never been addressed satisfactorily by Germany, France, England, Italy or any of the major EU powers.

PRESIDENT HARRY TRUMAN 1945-1953 OUR GREATEST POST-WAR PRESIDENT AND GREECE'S ONLY REAL FRIEND IN THE WORLD SINCE 1821-HE KEPT GREECE FREE OF COMMUNISM

HARRY TRUMAN AMERICA’S GREATEST POST WWII PRESIDENT WHO PROTECTED GREECE & TURKEY FROM COMMUNISM WITH THE TRUMAN DOCTRINE AND THE CONTAINMENT DOCTRINE AND FOUGHT COMMUNISM IN KOREA FEARLESSLY; HE SPOKE PLAINLY AND THE BUCK STOPPED “HERE” ON HIS DESK. TRUMAN WAS MODERN GREECE’S ONLY TRUE ALLY AND FRIEND IN MODERN HISTORY.

However, the US abandoned Hungary and the Czechs to their fates in 1956 and 1968, and never allowed Yugoslavia to emerge from communism. The US also allowed the pro-US, anti-communist junta to be dissolved and allowed it to intervene in the affairs of Cyprus in 1975, while also green-lighting the Turkish invasion of Cyprus that same year.

To the contrary, the EU has pursued a policy of abandoning Eastern Europe to its communist fate, and not doing anything to resist the advance of leftist and communist parties in Greece, even if they were funded by the USSR or Eastern European nations.

Worse, since the breakup of the USSR, the EU has broken up and balkanized the former Yugoslavia, creating stronger Muslim states in Albania, Kosovo and Bosnia, while also creating issues for Greece with the FYROM, and weakening Serbia, Greece’s natural ally of World War I and II (and the only Balkan ally besides Greece of both France and England from both World Wars, incidentally).

Such a policy has been a betrayal not only of Serbia, but also of Greece, and of the Versailles and UN pacts, as well as of the fundamental understandings of the peace accords following World Wars I and II that Greece and Serbia were the winners, and the other countries were the losers.

Greece is owed reparations, land and damages from the EU, the former Eastern European Republics which intervened in her internal affairs, and from the US for the additional issues over Serbia, Yugoslavia and FYROM and Kosovo.

All of these matters have conspired to make Greece economically weaker and to cut Greece off from its natural trading partner, Serbia/Yugoslavia, for an extended period of time.

The damages are in the billions of dollars. And apologies.

At a minimum, Greece is owed Southern Albania (Northern Epirus) as land compensation for the evil deeds done by the Communists for fifty plus years. They are also owed this because of the Albania invasions during World War II and because of Greek claims to the land dating back to the Balkan Wars of 1912-13 and World War I prior to the formation of Albania. Also, because Italy owes reparations to Greece and Italy, more than any other country, is responsible for the current drawing of Albania’s boundaries.

The land compensation issue is not a minor one.

The other land that should really be awarded to Greece since Yugoslavia cannot hold it is the FYROM. Only Greece has the military, governmental and spiritual resources to hold this land against the Albanian minority.

Likewise, Kosovo should remain part of Serbia. It is holy land to the Serbian Orthodox dating back to the 13th century, and this issue is far more important than who happens to live there now. Besides which, most of the Muslim peasants who reside there are transients, nomads or rebels transplanted there for the purpose of fighting the Serb army and not true residents of Kosovo.

The fact that Albania, Bosnia, FRYOM and Kosovo are becoming breeding grounds for the Albanian mob and Islamic terrorism are only additional reasons for extending Serbian and Greek military and territorial sovereignty and orthodox churches to these regions. This is just compensation.

III. GERMANY AND ITALY AND ALBANIA OWE GREECE MASSIVE WAR REPARATIONS FOR WORLD WAR II

Greece is owed war reparations on a massive scale by Germany, Albania and Italy (and therefore the entire EU) jointly for depredations during World War II. Not only were more than one million Greek citizens killed by warfare, starvation and occupation by the Nazis and Italy.

The depopulation of Greece and economic damages to Greece due to the Italian invasion of 1940, the Greek Counteroffensive of 1940-41 (capturing Northern Epirus) and the subsequent Italian and German Occupations, and the looting of Greek archeological and art treasures, the theft of Greek farm products, the deliberate starvation of millions of Greeks, the holocaustic killing of Greek gypsies and Greek Sephardic Jewish minorities in Thessalonica and Macedonian Greece in the hundreds of thousands, often against bitter Greek resistance, caused severe economic and population damage to Greece for decades to come.

If you watched the recent Tarantino film INGLORIOUS BASTERDS, which took a few historical liberties, you got the essential idea of what the NAZIS were like–jew-hating, propaganda-wielding zealots, hungry and mad for power. They killed, plundered and exploited their conquered nations with reckless but precise abandon.

EVIL NAZIS ARE THE TARGET FOR THE INGLORIOUS BASTERDS OF TARANTINO'S LATEST FILM

First, Greece’s population was decimated, probably by a factor of two. Greece today would be twenty million but for the decimations and depredations of World War II.

Second, Greece became depopulated of Sephardic Jews, its most productive and happy citizens of the North and of Thessaloniki. The economic consequences were incalculable to Thessaloniki. Greece was one of the main theaters of the Holocaust as Thessaloniki was a largely Jewish city prior to 1940. Its Sephardic Jewish community was centuries old. This was true in other parts of Greece as well where the Germans attempted to first quarantine, then liquidate the Greek Sephardic Jewish population.

Third, Greece was split into two armed camps, communist resistance fighters and pro-British royalists working with the American CIA, resulting in a bitter civil war from 1944-48 which further split the country upon the retreat of the Germans, killing off what little wealth and population was left. This war destroyed the wealth and population of the North.

Fourth, a wave of emigration began from Greece to the US, causing further depopulation. Things were so bad in Greece, everyone basically left. Again, net result, Greece’s population would have been around twenty million, maybe 25 million if there’s no World War II attack by the Italians and Germans, and their GDP in Greece would be about fifty times as large.

Fifth, Greece was looted of antiquities, paintings, ancient art and other valuable objects which were never restored to her. The Elgin Marbles are peanuts compared to what the German Nazis stole, and as we now know, the Russians stole what the Nazis stole, as in the case of the rare Heinrich Schliemann gold jewels of Troy, to give but one famous example of World War II art theft—the so called golden jewels of Sophia Schliemann which were considered lost for more than sixty years, suddenly appeared in a Russian museum once communism fell.

One could go on, but it’s clear that the Marshall Plan and US yearly aid does not approach compensation for damages done to Greece by Germany and Italy. Germany owes Greece a permanent stipend in the hundreds of billions of dollars and so does Italy.

Moreover, Germany is now a rich country, while Greece continues to be poor. This is directly a result of Germany’s own imperial Nazi policies under the Third Reich, which not only followed prior Prussian imperialism but added to it Hitler’s anti-Semitic notions of lebensraum, anti-Semitism and other nutty ideas he had absorbed while living in 1890s Vienna listening to pan-German anti-Semites yearning for the lost years of the German-dominated Habsburg Empire.

Perhaps Germany has moved on, but Greece has been unable to, because it continues to be paralyzed by the left-right splits which were directly created by Germany’s interferences in Greece.

Nearly everything that has happened in Greek economic and politics since 1940 is directly a result of World War II, as well as other external events not of Greece’s own doing.

Germany and Italy are the main culprits and owe Greece trillions of dollars in reparations.

Greece and Serbia were both on the winning side in World War II. Yugoslavia emerged stronger, but Greece considerably weaker, although it was given the Dodecanese Islands, including Rhodes, from Italy. But this was not a sufficient compensation for the depredations of the War.

IV. ENGLAND, FRANCE, TURKEY, THE UNITED STATES, THE EU AND THE UN OWE GREECE REPARATIONS AND LAND FOR VIOLATIONS OF THE TREATIES OF VERSAILLES AND OF SEVRES

Greece and Serbia were on the winning side Under the Treaties of Versailles and Sevres. Serbia was rewarded with the Kingdom of the Croats, Serbs and Slovenes, which later became Yugoslavia.

Because of the events that are described herein, Greece continues to be owed reparations by the old Ottoman Empire, Modern Turkey, England, France, the USSR, modern Russia, the United States, the League of Nations and its successor the UN, as well as the land promised them in those treaties.

Greece by contrast was denied Cyprus and the Dodecanese were given to Italy. Instead under the Treaties of Versailles (1919) and Sevres (1920) (signed by the Turkish Sultan) Greece was given more territory from Bulgaria, as well as Smyrna and a zone in Asia Minor around Smyrna, to be governed by Greece for five years pending a plebiscite. Also, Eastern Thrace, a massive amount of territory largely Greek speaking and Greek populated, flat and fertile and bordering on the Black Sea, up to the borders of Constantinople, was given to Greece. This would have approximately doubled Greece’s land area and created the Greece of two continents and five seas envisioned by Venizelos. Finally, the Treaty guaranteed the international freedom of the Straits (the Bosphorus, Dardanelles and Sea of Marmora) as well as the status of Constantinople as an International City, free of any governmental control by any national entity.

In time, it was inevitable that both Constantinople and Smyrna would become wealthy, influential and rich centers of Greek trade and influence.

At this time, in 1919, Asia Minor had approximately five million Turkish, three million Greek, one million Armenian and one million Kurdish citizens. Constantinople was more than fifty per cent Greek, Armenian and Jewish, and had more than thirty newspapers, the majority of which were in French, Greek, or Armenian. Smyrna was at that time the largest, most populous and richest Greek city in the world, and the center of the lucrative Greek tobacco trade, which dominated the world. Aristotle Onassis’ father was the richest tobacco merchant in all of Smyrna.

Greek history books refer to what happened next as “the great catastrophe,” but the real story is at once more complex and also much simpler.

First, the United States promised to administer the Armenian Mandate, adopt the Treaty of Versailles, and join the League of Nations and guarantee by military means, if necessary, the provisions of the dismemberment of the Ottoman States. The Armenian Mandate included most of Northern and Anatolian Asia Minor, where resided many Christian Armenians and Greek Ottoman Empire citizens, many of whom were seeking protection from Turkish and German oppressions and depredations since 1915 in American missionary schools and camps. An extensive record of German-Turkish brutalities, including the Armenian genocide from 1915 onwards, is to be found in many sources.

This American mandate never happened. First, the US Senate voted down the Armenian Mandate. Second, the US Senate voted down the Versailles Treaty. Third, the US Senate voted down the League of Nations.

Thus, what US History books refer to as “isolationism” is really “refused to get involved in the politics of the Ottoman Empire and the protection of Christians from Turks”. And “refused to send us peacekeeping troops to protect Christians from Muslim genocidal race-hating young Turks”.

Since this is such a common US peacekeeping mission today, perhaps we have trouble envisioning this, but in 1919, eugenics was so commonly pervasive in the US that Armenians and Greeks were truly thought of as inferior genetically and racially by many learned American intellectuals, and thus not worth saving. It would only be four years later that the same US Senate passed the most sweeping immigration reform bill in history restricting southern European immigration to very low quotas, based on the same bad science and racial notions.

Next, the Russians, who were allies of the Greeks, became communists in 1917. They made a separate peace with the Germans and Turks, and in 1919, Kemal Attaturk who was commanding the rebel forces in the hills of Ankara, but who had no money and no weapons, went to Lenin and made a deal for war loans and weapons, and got both. In return, they agreed to partition Armenia and settle the long-standing disputes over the Caucasus border. At this point they both knew the US wasn’t coming with its navy or army.

Next, having sealed off his Northeastern front with the Russians, Attaturk faced an attack from the west by the Greek Army, who was told by British Prime Minister Lloyd George in 1920 that the Greek Army would need to invade Asia Minor to deal with the problem of the rebel Turk army led by Attaturk. They were told they would be supported fully by the French, the Americans, the League of Nations and the British in their endeavor.

The Greek Army invaded, and won major victories, until reaching near Ankara, where they reached a stalemate, trench like position near the Sakarya River near Ankara. There, more than 100,000 seasoned Greek troops faced off against more than 100,000 seasoned Turkish troops (both armies had fought in both the World War and the Balkan Wars) for the next two years, from 1920-1922, without a significant change or advance.

Next, Attaturk made a separate deal with France. France betrayed England and cut a separate treaty of peace with Attaturk, in violation of Sevres and Versailles, and their pledges to the English, the Greeks and everyone else, surrendered all their weapons and artillery to the Turkish rebels, agreeing to recognize Attaturk as the true ruler of Turkey, as well as signing over land to Attaturk’s faux regime, including Antioch, a Christian city with a bishop and patriarch.

The reasons for the French betrayal are complex, but essentially boiled down to rivalry in the Middle East with England. For some reason, they felt it would be to their advantage to have an independent Turkey friendly to France on the border of French Syria and French Lebanon than one controlled by Greece.

Of course, as events turned out, this was a huge mistake, since when Germany re-armed, Turkey immediately re-upped with Germany and tossed France over the side leading up to WWII. This led to the dismemberment of the French colonies in the Middle East. This led in turn to the increase in the role of the British and the US in the Middle East after 1945.

In short, France not only made a diplomatic mistake, but it betrayed its two World War I allies and violated numerous treaties as well as insuring Greece’s defeat in the War.

The French surrender was a turning point in the Greco-Turkish War of 1920-22. First, it signified a diplomatic recognition of Attaturk’s rump regime. Second, it provided Attaturk’s fledgling army with needed weapons. Third, and perhaps most critically, it gave Attaturk only one front to fight on. Without a Russian front to the Northeast or a French Front to the South east, Attaturk could concentrate all of his army and newly found money, artillery and weapons from the French and Russians against the Greek Army along their extended defensive lines on the Sakarya River.

In the summer of 1922, Attaturk prepared a counterattack, and manage to split the Greek lines in two. This caused confusion, and ultimately, a rout of the Greek forces, which began a disorganized retreat back to Smyrna in two groups with heavy casualties, losses and mean captured. It is estimated the Greek Army suffered more than 60-80% casualties in this battle and series of retreats.

And yet, military victory was well within the grasp of Greece for many months if not years of the war, for reasons that will be delved into at greater length in a longer work still in progress.

At the end, the Greek Army disembarked on ships, and left Smyrna and the Greek populace of Smyrna to their fate. In September of 1922, Attaturk and his rebel army entered Smyrna, and in the year of the 500th anniversary of the capture of Thessaloniki by the Ottomans in 1422 (an event clearly in Attaturk’s mind) Attaturk made sure his soldiers looted, pillaged and raped every Christian home, citizen and girl in the city, and then set fire to the Christian quarters of the city. Much the same fate had befallen Thessaloniki in 1422 when it fell to the Moslem.

Smyrna was utterly destroyed.

The Sack of Smyrna was an awful and terrible event. Smyrna is one of the seven cities of the Revelation, along with Philadelphia and five other cities mentioned in the apocalypsis of the revelation of st. john the divine, written on the island of patmos but revealing the divine word of God. Thus, it must be fated again to be Christian.

cf the NYT 1922. http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9905EFD71139EF3ABC4C51DFBF668389639EDE

Eugenides’ Middlesex has a long passage on the sack of Smyrna–it is a central event in his book. It is the reason for the exodus of his main character Desdemona Stephanides to America–the sack of Smyrna.

There are several books treating this subject, but the best in english remains Smyrna 1922: The Destruction of a City by Marjorie Housepian Dobkin, http://www.amazon.com/Smyrna-1922-Marjorie-Housepian-Dobkin/dp/0966745108/ref=sr_1_2?ie=UTF8&s=books&qid=1269617432&sr=1-2. There is also a newer volume out by a Giles Milton, but by default I still recommend Dobkin’s volume. Also, Ernest Hemingway wrote a famous war dispatch in 1923 about the sack of Smyrna which can be found in any volume collecting his war dispatches for newspapers.

BEAUTIFUL SMYRNA AS IT WAS PRIOR TO 1922 - THE LARGEST GREEK CITY ON EARTH

THE CITY OF SMYRNA BURNING AS IT IS SACKED BY THE TURKS SEPTEMBER 1922 AND UTTERLY AND TOTALLY DESTROYED AND ITS CHRISTIAN POPULATION KILLED

The terms of the Treaty of Sevres were renegotiated by force the next year in the Treaty of Lausanne, resulting in the so-called “exchange of populations,” whereby all Christian Greeks left Asia Minor for Greece and all Muslim Turks left Greece for Turkey, but the exchange was both lopsided and unfair. First, there were 1.5 million Greeks still living in Asia Minor, and second, the Turks had killed another 1.5 million Greek civilians during the Greco-Turkish War in genocide of their own. Many more would die during the trip and in refugee camps in Greece once they arrived.

Far fewer Muslim Turks made the reverse journey.

Most, if not all, of the Asia Minor Greeks never found a home in Greece. Many moved to other countries, notably America, though some went to Russia, Romania, Bulgaria, Germany and other countries.

Those that did go to Greece did not feel Greek at all. They brought a different sense of culture with them, along with a sense that their land, their history and their past had been taken from them. But this is a story for another time. Their laments are today heard, and were then heard, in the rebetika of the time, the micrasiatika music.

In the final chapter of the War, the British refused to defend independent Constantinople from Turkish advance, and in the Chanak Crisis of late 1922, Lloyd George surrendered Constantinople rather than go to war with Attaturk, even though he himself had encouraged Greece to go to war with the same adversary. His Liberal Government fell soon after, and a Liberal Government has never again been elected in England. Lloyd George’s foreign policy can best be characterized as cowardly with regards to the Greeks. He failed to back them up with military and naval support and failed to commit to a total annihilation of the Turkish rebel army with British army and naval means.

That reparations, land and other monetary and equitable damages are due to the Greek Nation from England, France, Russia, etc. is clear. But for these treaty and agreement breaches, Greece would be a far greater, far more populous and far less Diasporic nation and peoples than it is. Also, Greece’s largest city, Smyrna, was destroyed at the height of its economic glory, and its largest trade center and Greek cultural center, Constantinople, was taken from it.

All in all, these two blows to the Greek economy were far too much for it to every recover. Sovereign Greece with a healthy Smyrna within it and an independent Constantinople trading freely would have soon become one of the most economically powerful countries on earth. What did happen in history was something far worse.

Greece is owed trillions upon trillions of dollars in reparations, land and two huge cities.

V. GREECE IS OWED REPARATIONS FOR THE FOURTH CRUSADE IN 1204 BY ALL THE WESTERN NATIONS

The Fourth Crusade sacked Constantinople in 1204, and looted and pillaged the city. At that time, Constantinople was the capital of the Greek Empire and the richest city on earth.

MAP OF MEDIEVAL CONSTANTINOPLE - THE LARGEST CITY ON EARTH IN 1000 AD AND MOST CERTAINLY THE LARGEST GREEK CITY AND CAPITAL OF THE ROMAN EMPIRE

To give an idea of what was taken, the St. Sophia alone had 40,000 pounds of gold and 80,000 pounds of silver decorating its walls and dome.

Just the gold alone, assuming 16 ounces per pound, and $1200 per ounce, would yield a value in 1204 of around $786,000,000.

However, in 2010, assuming an interest rate of 5% that investment would have doubled every 14.4 years since then or roughly 56 times.

The net worth of the gold in the St. Sophia, then, in today’s dollars would be approximately 5.69 times 10 to the 25th power—or approximately 56.9 billion trillion trillion dollars.

In short, more than the GDP of the entire EU combined, probably.

So, in short, Greece is owed everything owned by Western Europe.

At least that, in short, is the Fourth Crusade Argument.

Oh, and by the way, they stole the Holy Grail, the holy lance, the holy shroud (mistakenly known as the shroud of Turin, it’s the shroud of Constantinople), the crown of thorns the true cross, and all the other known relics of Jesus Christ. Is there a value on these? They were gathered in one holy place, a sanctuary, in Constantinople.

VI. THE EU SHOULD BAIL OUT GREECE BECAUSE EVERY ASPECT OF WESTERN CULTURE IS GREEK IN ORIGIN

This is even more basic than the Fourth Crusade argument. Everything in Western Europe and Western culture derives from Ancient Greece and Byzantine Greece—religion, art, philosophy, politics, science, mathematics, the renaissance, etc.

For this great endowment, the Greek people and the nation of Greece should be forever on stipend from Europe.

Every museum in Berlin, London and Paris has entire halls devoted to collections of Greek Antiquities. The Rosetta Stone and the Greek language were the key to unlocking Egyptology. The Gospels are written in Greek, as are the Septuagint and all of the major works of antiquity on geometry and mathematics which were studied by the Renaissance humanists, not to mention Galileo, Newton and others.

For this great endowment of learning, must we not reward the Greeks and Greece?

Monetarily? In Trillions? Quadrillions? Keep them a free trading zone? Lend to them interest free? Keep their country a kind of permanent museum?

One would think so.

I worked out the number once just for the Fourth Crusade. It’s about 1 times ten to the 56th power, even assuming a very low interest rate such as 3%, since 1204. You can work out similar numbers for the gold stolen from the Greeks and land stolen from the Greeks on many other occasions, including notably the sack of Syracuse, the various conquests by the Romans, the conquests by the Arabs, and so on and so forth, but the conquests by the 4th or Latin Crusade are the most galling, because the Catholic Church does not renouce either their spiritual claim or their temporal claim to the lands. In fact, you can go to France or Germany or any of these countries, today, and obtain a dukedom or other royal title appurtaining to Athens or any other city which used to belong to the Eastern Roman Empire. In addition, the Catholic Church appoints Bishops to every eastern city in which there should only be a Patriarch appointed by the Bishop of Constantinople,e.g. the Patriarch, thus not recongizing his full equality in the Christian Church.

It would be silly of me to see the hand of opus dei or some nefarious plot behind all these machinations against the Greek Government, but you have to admit, the Germans have been in league with the Catholic Church before, to be specific, 1938, and that didn’t turn out so well for Europe or its then considerable Eastern European Jewish population. Whenever Germany takes an interest in Eastern Europe and the Balkans, and you have a sitting German Pope, it’s a pretty good bet someone wants to reconstitute the Austro-Hungarian Empire along Germano-Catholic lines. Recreating Croatia as a catholic, independent country was certainly a good first step in that direction. Perhaps isolating Greece, Rumania, Bulgaria, Serbia and Russia, the bastions of Orthodoxy, is the next step in the plan.

Of course, it’s not secret that Angela Merkel is unpopular at home. Saber-rattling against some small defenseless country fits her agenda. And, of course, there are millions of foreign Turkish gastarbeiter working in Turkey.

Returning to our main theme,Christianity itself is Judaism plus Platonism==expressed in Hellenistic philosophical terms by the Greek Church fathers.

And to Greek culture and philosophy we owe Islam and Protestantism, and perhaps even Confucianism and Buddhism too, since it was Alexander the Great who brought his Greek Philosophers to the brink of China and India in the 4th century BC.

As the Hollies once sang, “Pay You Back with Interest.”

It’s a big debt Europe owes the Greeks. Not the other way around, last time I checked, the ledger is still pretty heavily on the Greek side.

–ART KYRIAZIS, AKA ATHANASIOS IOANNIS KYRIAZIS
3/25/2010 greek independence day

It probably isn’t news to anyone currently breathing that every newspaper owning corporation in the United States is currently in bankruptcy Chapter 11 proceedings. Here in Philadelphia, after sinking more that 500 million bucks to take the Philadelphia Inquirer and the Philly Daily News off the hands of the guys who bought them from Knight Ridder, the purchasing group headed by Brian Tierney et al. ended more than eleven months of negotiations with creditors by filing for Chapter 11 protection with the United States Bankruptcy Court, meaning reorganization and possible liquidation. There are serious rumors that only one of the two newspapers will survive, probably the Inquirer.

In a way, this is strange, because there was a time in Philadelphia, and I don’t mean going back to Ben Franklin, when it was obvious that the Inquirer was the worst and most pitiful newspaper in town. The Philadelphia Public Ledger was the newspaper of record (its building still stands at 6th & Chestnut) for many decades, while the Philadelphia Bulletin was clearly the better of the two papers while the Bulletin and Inquirer were the two main papers in the second half of the 20th century.

Of course, the Public Ledger went under in the Great Depression; it died in a court-ordered liquidation in 1941 or 1942. This may just be history repeating itself. The Public Ledger was owned jointly by the owners of the NY Times, incidentally.

For a complete list of ALL newspapers ever printed in Philadelphia, go to this website pdf of newspapers held by the free library of philadelphia;

http://libwww.freelibrary.org/faq/guides/FLP-NEWSPAPER-HOLDINGS-BY-DECADE.pdf

you’ll be shocked and amazed how many newspapers there have been and how many small ones there still are other than the inquirer and daily news even now.

But then again, the Philadelphia Athletics won five world series and too many pennants to count between 1901 and 1953, and were the main baseball team in Philadelphia for more than fifty years. No one gave a fig about the Phillies. It was only after Connie Mack died and the A’s moved away that the Phillies finally developed a fan base, and even then not really until the 1964 pennant run with Dick Allen and Jim Bunning did they really draw any fans. But who remembers the A’s today in Philly? Where are they today? No one in Philadelphia remembers them at all.

There’s a small museum in one of the counties, and a small bronze plaque at the new ballpark. That’s about it for the team that in the first half of the 20th century was the second best ballclub in the American League, and by far the best professional sports team in Philadelphia.

Getting back to newspapers, the point is that you can’t understand history by looking at it now. If you looked around now and saw humans, you’d never know that dinosaurs once ruled the earth. Likewise, looking around and seeing the Inquirer being the main newspaper, you’d never know that once there was a Public Ledger, a Bulletin, and probably a dozen other papers. Even the Saturday Evening Post, the nation’s number one women’s magazine, was published right here in Philadelphia, but it died too. That building is still around also. We have seen the end of magazines like Life, the Saturday Evening Post, and most recently, U.S. News & World Report, in the past forty years. Now newspapers are dying as well.

There were a lot of great movies about newspapers. The best movie of all time is about newspapers. Here I refer to Citizen Kane (1941), which is a thinly veiled biopic of William Randolph Hearst and his media empire.

There’s also Meet John Doe (1936) and let’s not forget All the President’s Men (1974).

I’d throw in Broadcast News (1980s) as well, even though it’s really a TV movie, just because it’s flat out hysterically funny and not at all dated, and because Brooks is one of my favorite comics in the world other than Mike Reiss. Just looking at Brooks makes you laugh.

But history does repeat itself. The Hearst media empire was bankrupted by the Great Depression—so much so that Hearst himself, so rich that he could build the Heart mansion—the famous “Xanadu” in the Kane movie—in San Simeon, California—now a famous museum—actually lost all his money to his creditors in bankruptcy proceedings and lost control of his newspaper holdings. No one today has heard of the New York newspapers that Hearst made his fortune from.

Now, we are going through another serious economic dislocation which is again severely affecting media badly. As badly as Hearst was affected by the Depression and War years, that’s how badly newspapers and old media will be affected this time around. Add to that the free news which is available on the internet, and on every persons’ telephone, and one would be silly to expend money for a newspaper.

It’s quite obvious that within another twenty years, there will be no more magazines or newspapers in print at all, that everything will be delivered right to your computer, tv or phone via internet. Maybe (and I often futurize about this) the convergence of nanotechnology and biotechnology will eventuate in a chip being implanted in your brain or neural net, so that you can visualize the images yourself without a machine mediating at all. Perhaps we’ll all be connected to the internet and to each other one day in such a fashion. It’s difficult to make radical predictions, but then again, in 1910, no one could have predicted that baseball, then a deadball sport based on bunting, stealing and pitching, would in the 1920s and thereafter become a sport of sitting around waiting for someone to hit a three run home run.

I will miss the Philadelphia Daily News. For the last forty years, it’s been the best sports paper in the country, and I’ve read all the other papers around, including the Boston Globe, the Chicago, the LA, the NY and SF papers. NY has tabloids basically and no good writing at all; the Boston Globe for a long time had great writers, but they’ve all gone to ESPN or national outlets where the money really is; and no other city really had good sports writing. Philly might be the last town in which there’s been good beat writing and sports writing for a long time now.

If the Daily News goes, that will probably be the end of it, though it may survive on line since there’s an online edition of the daily news that’s pretty good, and even better, available nationally to all former philly residents who follow their teams. So when they throw the last daily news into the fire and you see the sled burning with the name “rosebud,” remember you read it here—this was all a story about Charley Foster Kane, who wanted to be the world’s greatest newspaperman, and succeeded all too well.

By the way, I mentioned in a prior post that GE was way off about Jimmy Fallon? GE stock is now trading at five dollars a share. That’s right, five dollars a share. they made a big deal about this on one of the network news shows while i was working out on the elliptical at the gym. whoa nellie! The stock apparently has completely crashed.

Jack and Suzy Welch, would you buy this company’s stock? It was trading at $40 just last year. And now it’s down to $5 a share and dropping like a rock. Pretty soon it will be worth, say, 1923 German deutsche marks, which is to say, nothing.

Oh yes I would says the Wizard of OZ. You can get a thousand shares in this company now for the price of a song. Heck, the only place the stock can go is a little down, or a lot up.

I said they should have bumped Leno three years ago. While I recognize most of their problems are with GE Capital, entertainment is the division that’s always recession proof.

If you’re not sure about that, check out the fact that 1930s and 1970s are the greatest eras of film history.

Jimmy Fallon had another great show–Jon Bon Jovi did a duet with one of his fans, while Tina Fey sat and rooted the two of them on. I think it was the girls’ dream moment of her life, all caught on camera. You can bet that will be on youtube.

Art Kyriazis
Philly/South Jersey
Home of the World Champion Philadelphia Phillies
You can

Time Magazine just did a cover story on stem cell research, which is commendable. They also entitled the story “The Quest Resumes,” which is commendable, focusing on the fact that the Federal Government, under the Obama Administration, may finally allow (this may already have been approved by executive order) federal funds for stem-cell research at federally funded research institutions.

However, the subtitle of the article is “After eight years of political ostracism, stem-cell scientists like Harvard’s Douglas Melton are coming back into the light—and making discoveries that may soon bring lifesaving breakthroughs.” Time Feb 9, 2009 at p. 36.

Now, let’s examine that for a second—In Massachusetts, where Prof. Melton plies his craft, the Commonwealth and State of Massachusetts, like the State of California, has voted state support of stem-cell research at institutions of higher education. Therefore in Massachusetts, like California a bastion of biotechnology, the biotech lobby was able to secure state support for stem-cell research during the eight-year long federal ban on such research. So compared to the other 48 states, Prof. Melton was actually at an advantage because his lab was in Massachusetts.

Because of the federal funds ban, a great deal of stem cell-research has begun to spring up in places like Southeast Asia, as the Time Magazine article correctly notes, and as it well-known in the biotech industry. But a lot of it is also staying put in Cali and Mass due to those states putting up seed money for biotech research that is stem cell oriented.

Next, Prof. Melton works as co-director of the Harvard Stem Cell Institute (HSCI), which Harvard has committed substantial resources to supporting over the past eight years and well into the future. According to their 2008 report, their annual spending has grown in the past two years from just over $5 million to over $16 million in fiscal year 2008, most of that culled from private and corporate donations. HSCI currently has no less than eight ongoing challenge grant research projects sponsored for $75,000 each, all of them stem cell oriented.

Now I am a powerful supporter of stem-cell research, and I strongly advocate that the federal government support stem cell research. The question I have for Time Magazine is, and maybe perhaps for the Federal Government, is HSCI the most needy recipient for federal funds for stem cell research? The article omits that HSCI is well-funded by private donors, and omits that Massachusetts provides state support (it is not clear if HSCI accepts Massachusetts money) and therefore the article in Time is somewhat misleading.

The argument for funding HSCI federally has to be this; we, e.g. HSCI, made a good faith effort to get the ball rolling the past three years through private financing, we have already a lab in motion with research projects, so if you fund us, we will be three years closer to getting results than any other academic lab you choose to fun. Consequently, their NIH grant requests will carry a certain heft.

On the other hand, they are not as dramatically in need of the money as some other labs who don’t have any private funding at all.

A more useful article would have been to depict the overall situation in the rest of the United States, and some of the labs outside CA & MA.

This is an interesting issue and one on which arguments on both sides would and could be marshalled.

It should be pointed out that I strongly support the work of Prof. Melton and the work of HSCI. Those initiatives were put into place by then President Lawrence Summers, along with the Broad Institute initiative, a few years back, and clearly they have had the effect of putting Harvard back on the map in terms of genetics and molecular biology research.

The good news about the Time article is that the words “Stem Cells” made the cover, along with a nice bio-photo. If nothing else, Americans this week can forget about the economy and the war for a moment and realize that stem cell research is an answer to many of our problems that don’t involve boundaries and account balances and fumes spewing out of our cars.

–art kyriazis philly/south jersey
home of the world champion phillies

this is an actual case study I did at Wharton about fifteen years ago for Steve Sammut’s class on advanced patent portfolio management theory. This case is of interest because it concerns a biotech company, and because, re-reading it after a long time, it actually reads very well. Even before I had all the experience I do now, I actually had a good feel for what to do with the management of a biotech company even back then, so here it is. And yes, I did get an “A” in the class, of course. Dr. Sammut used to run the tech transfer office for Penn during the 1990s.

–art k

ps enjoy!

T-CELL SCIENCES, INC. CASE

by Arthur J. Kyriazis

MGMT 898 – PROF. SAMMUT

Wharton School (WEMBA)
University of Pennsylvania

April 22, 1994

Issues

T-Cell Sciences, Inc. (“T-Cell”) is a 1983 Cambridge, MA biotech/pharmaceutical startup sired by Patrick Kung, a “recognized pioneer in immunological research.” The main issue appears to be defining T-Cell’s ultimate market niche even as it undergoes the process of transition from a venture-funded start-up to a more mature publicly held corporation. Specifically, in the coming months and years, should T-Cell (1) concentrate upon basic across the board immunological R&D; (2) concentrate upon basic immunological R&D with a focus on diagnostic drugs and product(s); or (3) focus upon strategic alliances with large pharmaceutical companies with an eye cast towards the development and delivery of therapeutic pharmaceutical drugs?

It would appear that until the arrival of James D. Grant as CEO in November of 1986, the main issue might well have been a different one altogether, namely whether T-Cell would reorganize or liquidate. In early 1986, T-Cell was a company in trouble and one which was not being particularly well-run or well-managed, even though it had brilliant scientists and innovative technologies full of commercial promise. Even though startups might be expected to lose money at the outset, T-Cell’s losses in 1985 and 1986 totalled nearly $2 million, compared with $5.5 million capitalization from December of 1983 throught January of 1986. This apparently necessitated a public offering in May of 1986, which raised $11.1 million, followed by the hiring of Mr. Grant in November of 1986, and his hiring of a well-heeled financial CFO immediately thereafter.

In addition, up through Grant’s arrival, T-Cell had only developed two products of any consequence, ACT-T-SET, and CELLFREE, and only two joint venture/research alliances/R&D contracts of any consequence, the Syntex USA contract and the Pfizer contract, and had failed to show any revenue from product sales through 1986, and only $13 million in revenue from contracts in 1986.

In brief, one may surmise from the case study that a great deal of money was spent at T-Cell, until Grant’s arrival, on basic immunological research, without a very well defined sense of where the research was going, or how it would be profitable or generate a return to the company and to the investors. This might have been a result of Dr. Kung’s diffuse vision of the company’s market niche as somehow doing R&D better or faster, and perhaps a touch of the academic fondness for the intrinsic value of broad based academic research as opposed to targeted research and strategic alliances directed to product development and ultimate profit.

Grant’s arrival placed T-Cell on a radically different footing and he appears to have turned the company around. Losses were reduced by nearly a million dolars from 1986 to 1987, and for the year ending in April of 1987, T-Cell reported positive product sales revenue of nearly $400,000 together with contract revenues of nearly $2 million. In addition, Grant apparently negotiated the deal with Yamanouchi Parmaceutical, which as he characterizes it places T-Cell on a sound cash flow footing for the foreseeable future. In addition, Grant has introduced a sound line of command and professionalized the management of the company by hiring a financial officer and a regulatory affairs officer, paying attention to patent management issues, and spending time painting a sound, attractive picture to shareholders, potential investors and to regulators. Finally, Grant’s status an a former FDA head bodes well for the regulatory hurdles awaiting T-Cell’s products.

T-Cell’s Strengths

T-Cell’s strengths are many. First, it has a distinguished corps of researchers led off by Dr. Kung, who appears to be a leader in the field of T cell research. It is situated in Cambridge, MA, in the heart of the Harvard-MIT research community, and can be expected to easily draw upon an outstanding technical scientific staff for its research needs. Also, the scientific advisory board includes people like Dr. Mark Davis and others who are world-recognized scientific leaders.

Second, T-Cell has introduced two product lines in 1986, the ACT-T-SET and CELLFREE technologies, which assuming patent protection and FDA approval, are potentially product mainstays for the company. These two products are expected to have applicability in the diagnosis of various stages of immune system stimulation and white blood cell activity. Dr. Kung and Mr. Grant expect R&D to eventually identify other new products in the same T cell related vein with applicability in the diagnostic field.

Third, T-Cell has two joint ventures, with Syntex and Pfizer, and now a third, with Yamanouchi, which promise to focus on specific product development, with the obvious potential of delivering a drug to market which can be of wide therapeutic applicability and therefore be a cash mainstay for the company. The Syntex and Pfizer ventures aim to produce therapeutic drugs targeted at common medical ailments, including breast cancer, type 1 diabetes, rheumatoid arthritis and cytomegalovirus. The Yamanouchi venture aims to develop products to diagnose rheumatoid arthritis and lung cancer. An added benefit is the global ability to develop and market products and drugs in Japan and the rest of the world while awaiting FDA approval for their sale in the United States.

Fourth, T-Cell now has James D. Grant, who must be reckoned as an important asset of the company at this juncture. His management skills have put T-Cell on a sound business footing; his contacts have resulted in new joint venture(s); and his FDA expertise should translate into FDA product approvals.

Which Fields or Options are Most Attractive for T-Cell?

The basic R&D approach is wrong for this size company. What the company needs to do is ultimately make a decision between developing diagnostic products/drugs on its own, or on developing them with partners. Grant appears to be committed to a strategy of hedging his bets by pursuing both options. He is willing to commit some money to R&D and to diagnostics, while courting and signing deals with large pharmaceuticals for strategic alliance(s) aimed at delivering specific types of therapeutic products/drugs. Grant also feels that the diagnostic(s) division, once profitable, should be spun off because of the competition in that field.

Recommendations

Grant probably has it right. The therapeutic emphasis is the best way for T-Cell to go right now. The joint venture/strategic alliance approach is a sound one. If successful, the development of even one drug marketed to a patient population as widespread as the breast cancer or lung cancer populations promises immediate payoff for T-Cell’s efforts and a handsome reward for its investors.

With diagnostic drugs on the other hand, even if approved and even if proprietary, it is hard to see how T-Cell will be able to exploit the discoveries, so that Grant is probably correct when he surmises that this division or these proprietary discoveries will ultimately be spun off. Of course, licensing and franchising are options we have discussed which absent from Grant’s discussion(s).

The best way for T-Cell to go would be to continue to solicity these contracts and joint ventures. T-Cell has recognized, proven scientific talent and recognized expertise in this very specific area of immunological research.

One specific recommendation is that the company hire a patent portfolio manager and begin to concentrate on patenting more of its discoveries, as well as concentrate on getting products to FDA submission stage. This manager must also concentrate on getting the researchers to recognize when a discovery may or might be patentable or commerciable in some respect. These two steps will make the company attractive to investors and a steady stream of patent application(s) and FDA approval applications are evidence that a company has been doing its homework.

These steps, if followed, should result in a successful new round of equity financing and/or an invitation to buy the company out altogether. In either event, the company will have attained a substantial goal. Finally, T-Cell should keep Grant around. Given the company’s history, investors could get extremely nervous if he were to depart suddenly or unexpectedly.

–Arthur J Kyriazis, 1994

THIS WAS AN ACTUAL CASE STUDY I WROTE FOR THE WHARTON SCHOOL IN THE SPRING OF 1994.

–art kyriazis
Philly/South Jersey
Home of the World Champion Philadelphia Phillies
Home of the Incredible Philadelphia Eagles
Home of the Arena Football League Champion Philadelphia Soul
Making the Playoffs in 2008: The Sixers, the Flyers, the Phillies and the Eagles!
Happy New Year 2009

The Economic Crisis unfortunately heralds an enormous economic crisis in 2009 for Biotechnology, the major sector I work in, in at least three major facets, all of which are inter-related:

1) The collapse of the investment banks, and indeed, of the banking and lending industries generally, means that the major sources of capital for most biotechnology companies that are currently operating at a loss or “burn” rate while continuing to research or develop pipeline products, drugs or devices that are still several years away from FDA approval (or approval in any market here or abroad), in turn will collectively lead to a major liquidity crunch for biotechnology companies coming due shortly.

BIO, the major lobbying group for the Biotechnology Industry, currently estimates that there may be as many as one hundred publicly traded biotechnology companies that have nine months or less of cash left on hand with which to operate, and very few sources of liquidity to draw upon for operations thereafter, due to the fact that they currently do not have drugs in the pipeline or are not currently operating profitably, e.g. they are currently on a burn rate and are losing money.

We may therefore see the end or termination of operations of many publicly traded biotechnology companies in the next six to nine months. In addition, pharmaceutical companies (or other buyers) will be able to purchase these companies at fire sale prices if they simply wait a little while longer.

2) Venture Capital money is down at least fifty per cent, and whatever VC money is left is very, very picky right now. IPOs have come to a complete standstill, and numerous biotechs have canceled their planned IPOs. Consequently, infusions of cash from investment banks, regular banks, VCs or IPOs are currently not as viable as they were six months ago.

3) Angel investors are being besieged with three times the requests for much more money than usual as a consequence of all this top down need for liquidity, and they (reasonably so) are seeking to be more picky as well in what they invest in.

The consequence of all three of these factors is that we will see a massive shakeout of the Biotechnology Sector in 2009. Many existing companies will be bought up by existing Pharmaceutical companies or biotechnology companies that are currently cash rich or have mortar and brick assets. Companies that want to diversify into biotechnology, this is your chance to buy up patent portfolios and intangible assets on the cheap. Biotech companies will look to be acquired, look to get cash at all costs, and look to accelerate their timetables to get products to market.

It may be at the end, that only thirty to forty per cent of the existing privately and publicly held biotech companies will be standing at the end of 2009. There will be massive consolidation.

Driving this at the other end is the fact that big pharma has expiring patents, is facing increasing competition from generics, is looking to invest in biologics, which cannot be imitated by generics, and finally big pharma is facing the possibility of increased regulation and lower profit margins under the Obama Administration. This will drive and accelerate the consolidation of biotech assets and companies into the hands of big pharma, which will increasingly resemble biotech companies in terms of their R & D and patent portfolios.

These will be troubled and difficult times for Biotechnology and in some related sense, also for Big Pharma.

–dr. arthur kyriazis, m.sc.e., molecular biologist,
consultant to the biotechnology industry