Charles, a couple of questions. I don't follow IMNX closely so they may be a little naive.
1 - You mentioned in your post that AHP has an option to buy IMNX 5/98. Browsing Edgar Online, it looks like there's a standstill agreement preventing a hostile bid anytime through 5/31/98, but no option to acquire the rest of the company. What's the actual arrangement, and if it's just the expiration of the standstill agreement, what do you expect AHP to do and why, and when do you expect them to do it.
2 - From the IMNX 10-K, AHP's payments to IMNX covering the shortfall on oncology product revenue end 12/31/97. Although the analysts all know this, and have undoubtedly factored this into their models and earnings projections, do you think the loss of these payments starting CY Q1 98 will affect the price of the stock?
TIA.
Peter
"AHP is required to make payments or contribute products to the Company
if revenues from certain marketed products do not achieve established
levels ("Expected Revenues") through December 31, 1997. The revenue
shortfall obligation is limited to a maximum amount in each year
("Maximum Guaranty Obligation"). Such payments are treated as additional
contributions to the capital of the Company.
AHP's Maximum Guaranty Obligation and the Expected Revenue for the year
ending December 31, 1997 is $60.0 million and $216.5 million,
respectively. The Company recorded a receivable from AHP of $56.0
million, $45.3 million and $35.8 million for the revenue shortfall for
the years ended December 31, 1996, 1995 and 1994, respectively." |
