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Biotech / Medical : Neurobiological Tech (NTII)
NTII 0.00Dec 18 4:00 PM EST

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To: maileg who wrote (324)4/17/1998 12:48:00 PM
From: John Dwyer  Read Replies (1) of 1494
 
Hi Darci,
Well, I'm a bit disappointed myself. If you look at the details
of the deal though, it is unclear how good this is. While it
appears that they will receive important synergies with Merz on
the Memantine front, they only received about $2 million in upfront
payments. Therefore, unless Merz pays for the entire cost of the
Phase III trial NTII can't start it without another deal.

It appears that they have played their trump card and have managed
to buy some time. I think it's interesting that Merz has Phase III
trials in Europe for other indications, and it appears that NTII
might share in the revenues from these indications... I don't
understand that part, I'm probably mistaken. However, this does not
seem to be a ringing endorsement for NTII. Still, from a position
of extreme weakness, I think NTII did pretty well. It is still not
clear whether NTII will be around six months from now and I think
that is probably why the response today has been somewhat muted.

John
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