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Biotech / Medical : Cadus Pharmaceutical Corp. (KDUS)
KDUS 1.6000.0%Jul 2 5:00 PM EST

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To: David Richardson who wrote (126)3/10/2000 12:49:00 PM
From: tuck  Read Replies (3) of 1833
 
Richard,

This is an interesting situation. Three things get my attention with this one:

1) Carl owns 25% of the stock but has ties with nearly half the BOD. Not sure what the implications of that are.

2) Company 10-K mentions other competitors doing one thing or another with yeast-based genomics, but doesn't choose to enlighten us as to who those competitors might be. Do you know of any? I gather management believes Cadus is the only one with an entire platform technology, a complete drug discovery system, based on yeast.

3) How big a deal is this litigation, anyhow? Seems to me they are close to working around the patented technology problem. If they win the dispute, they can sue for the damages that arose from being jammed up like this. Seems to me the worst is priced in, but neither will the stock see double digits until a) the patent dispute is resolved and Cadus either wins or licenses, or b) Cadus announces they can do the readout another way.

Interested in your thoughts about the above.

Cheers, Tuck
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