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Biotech / Medical : Zonagen (zona) - good buy?

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To: Bruce Rosen who wrote (6449)4/30/1999 5:56:00 AM
From: Linda Kaplan  Read Replies (1) of 7041
 
Bruce: Schering put a LOT of Vasomax into the Mexico pipeline. You can see that by the original royaly figure. They stuffed the pipeline. How can you say that most pharmacies didn't carry it? They did carry it. They just haven't sold it.

Why would Schering go to the trouble to secure approval in Mexico, sell to all those pharmacies in Mexico, and then not do any PR? We simply don't know whether they did PR at all, since we've not been there and don't read the Mexican magazines and watch Mexican TV. We don't know they did no PR. We know they obtained approval, convinced a lot of pharmacies to buy and then that there were no sales to pharmacies after the initial quarter.

There's no evidence this was some sort of weird test by Schering to determine if people would buy without any advertising. We simply know that Vasomax failed in Mexico.

Vasomax failed in Mexico. I consider that an important indicator of what will happen if Vasomax is approved in the US. That's why I think that after an initial quarter of sales, the stock will plummet. I just don't think there'll be sales in the US after the first quarter, either.

Linda
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