Biotech for less than cash value Message Board

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Biotech / Medical : Biotech for less than cash value

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To: west57th who wrote (246)	11/10/2005 4:26:43 PM
From: JMarcus	Read Replies (2) of 684

On the subject of PARS, JM Dutton gives the stock a Strong Speculative Buy rating, stating: November 03, 2005. We believe that Pharmos Corporation's (Nasdaq: PARS) work with Cannabinor, one of its lead cannabinoid compounds, and other CB2-selective cannabinoids could lead to successful therapeutic products. Add to this the fact that the Company's common stock is currently trading for less than its cash per share with approximately $50 million in cash and a burn rate that we believe will average approximately $12.5 million over the next few years. We conclude, therefore, that an investment in Pharmos is relatively safe for an early-stage biopharmaceutical company, with the most probable downside being "dead money" and an upside being what could be an approximate 80% return in one year. Based on the premise that Pharmos will be in phase II clinical trials next year at this time and comparing the current value of Pharmos to an average of comparable biotechnology companies in phase II trials, we arrive at our 12-month price target on the common shares of the Company of $3.75 and our rating of Strong Speculative Buy.

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