ARADIGM CORP. ARDM Message Board

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Biotech / Medical : ARADIGM CORP. ARDM

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To: Numberspro who wrote (163)	8/12/2003 5:16:24 PM
From: Tadsamillionaire	of 255

The market is not giving ARDM any credit for the company's Intraject technology and thereby making ARDM an undervalued opportunity. There are two business units here. Let me explain: First there is Intraject -- they purchased Intraject for about $2 million, but was able to cut enough costs to allow ARDM to maintain its current burn-rate (i.e., more products with the same burn-rate). Intraject is worth at least $30 to $40 million based on very conservative assumptions (as you know, Intraject is the needless-technology platform that the company owns). The technology is very promising and has very real opportunities. Next is AERx -- the platform that has been delayed until late 2004/early 2005. That is fine because the intrinsic value of AERx is still intact – the only downside to the push back from my stand point is the potential put option that the company will exercise with NOV to the tune of $20 million (which combined with the current cash balance of $28 million – the company will have enough cash for about 2 more years). The question is: What is the value of AERx? Well the market seems to think it is worth less than $60 million today. NOT INCLUDING Intraject! The key word is “today”. And with 90% of the negative news already in the stock (i.e., the delays, etc..), $60 million is too much of a discount for AERx. There are plenty of catalysts that can occur with the Intraject platform that the market is not taking into account. Keep in mind that ARDM has not focused on this platform in the past. For example, Intraject has lots of term sheets in waiting – and should announce some contract with a major pharma company soon. Worst case is that in FIVE short months (January 2004), investors will start to look at early 2005 when Phase III will resume and they will drive up the share price of ARDM in anticipation; coupled with potential news regarding Intraject, makes ARDM a home run for prudent and disciplined investors. All in all, this is clearly a $3 to $5 stock (although Wall Street would say it is worth $9+). Copied from the YAHOO board. finance.messages.yahoo.com

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