GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: out_of_the_loop who wrote (1925)	12/21/1999 9:07:00 AM
From: DanZ	Read Replies (1) of 5582

This is HUGE news!! A few quick comments. The joint venture will market "alternative products for the smoker, who cannot or does not want to smoke" This implies something much bigger than the smoking cessation market, which alone is big at about $500 million in annual sales and expected to grow to $1.5 billion in a few years. They are going after all smokers with a nicotine substitution product. The market for smoking products in the US is $46 Billion, and I have heard estimates up to $250 Billion world-wide. HUGE!! Swedish Match is a very large tobacco company and has the Redman brand name. Maybe they will use this brand name to market their nicotine products. I don't know if they will do this, but it would make sense to use an established brand name, and Redman is very well known. HUGE!! Gum Tech will own 49% of the joint venture! This is a huge amount considering that Swedish Match is contributing $10 million in start up cash. Obviously Swedish Match did the math and concluded that the potential returns warranted this deal and that Gum Tech's expertise in nicotine gum formulation and manufacturing facilities are worth 49% of the joint venture. HUGE!! A quick look at Swedish Match's website (http://www.swedishmatch.com), and you will see that they recently divested their smoking division. Their corporate strategy is to move towards entirely smokeless products. This joint venture with Gum Tech fits in perfectly with that. I wonder if they divested their smoking division because they knew that this joint venture with Gum Tech was coming? HUGE!! This stock will go through the roof today if people understand the implications of this joint venture. Wow, little ole Gum Tech pulling off a deal like this. As I have often said, Gum Tech will surprise its critics and blow away people who bet against them. Dan

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