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Biotech / Medical : Neurobiological Tech (NTII)
NTII 0.00010000.0%Mar 7 3:00 PM EST

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To: John Dwyer who wrote (202)12/11/1997 11:03:00 AM
From: Dr. John M. de Castro  Read Replies (1) of 1494
 
If the neuropathic pain trial results are positive money will not be a problem. This is a huge market and there are no current effective therapies. Positive results will more than likely result in a partnership. It would also lift the stock price to a level that would make a secondary not too dillutive. NTII may need some short term cash; maybe a private placement deal. But, a partnership at this point in time would not be a good idea. A partnership should be sought only after positive results when NTII will be able to negotiate from strength.

I believe in memantine because the preclinical data are strong and convincing. There has never been any question that an NMDA antagonist could block neuropathic pain. The question has always been whether an NMDA antagonist can be developed that can supress pain at doses that do not induce side effects. Memantine appears to be ideal in that regard. There are years of experience with it in Germany, demonstrating it to be safe. I will be stunned if the trial results are not positive.

In regard to delisting. The main problem is psychological and the stock value usually drops after a delisting. It becomes more difficult to trade the issue as a number of discount brokers do not trade in OTC-BB stocks. So delisting would definitely be bad for the stock value. But, doesn't change any of the fundamentals of the company.

I remain long and confident.

John de C
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