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Biotech / Medical : AQUILA BIOPHARMACEUTICALS INC (AQLA)

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To: Harry J. who wrote (34)5/16/2000 10:54:00 AM
From: AurumRabosa  Read Replies (1) of 45
 
Harry, I don't know if "inquiries" is a term of art because I don't know what "term of art" means. It sounds like legalese. My understanding is that if any public company gets a takeover offer that they must report this significant material fact to all shareholders and prospective shareholders immediately. Since they didn't say offer they must not have an offer. However, their setback with Quilvax-M pushes out their cash flow prospects and hinders their progress. I learned in talking to their CFO that their vaccine for TB will require a large clinical trial and will be too expensive for AQLA to go alone and they must partner with someone. I suspect execs from big pharma have approached AQLA execs and said lets team up and accelerate some of your work while in the back of their minds they're thinking that at a market cap of about $34 million AQLA is pocket change and we like the patent portfolio so let's see if we can't eliminate competition by buying the whole thing and taking the best for us and licensing the rest to others. As long as my imagination is working overtime I'll further speculate that since they're talking versus just making a hostile 'take it or leave it' offer that the prospective buyer wants to get AQLA intact. I would think that would be wise since in the long run their CD1 technology has huge potential. Since AQLA will not benefit from the windfall sales I was hoping that Quilvax-M would've provided (and hopefully the jury is still out on Quilvax-M) they're going to need a lot more money to do justice to the CD1 technology development. Even though your searches did not turn up those exact words I believe it's fairly common to hire an investment banker to advise execs on M&A matters. What is your take on this AQLA development?
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