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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: tommysdad who wrote (415)	6/11/1999 9:42:00 AM
From: Biomaven	Read Replies (1) \| Respond to of 3158

We've seen a few examples now of third tier stocks picking up distressed fourth tiers. We've also seen some interesting "sideways" mergers between peers - look at VLTS, for example. There are two schools of thought on these. One is that the merger of some weak smaller companies just makes a weak bigger company, and nothing is gained. AXPH is perhaps a cautionary example of a sideways merger that didn't pan out (at least when judged by the stock price). On the other hand, one complaint about the smaller companies is that they are too small, meaning no liquidity. Mergers can only help in this respect, although I think you really need to get the market cap above around $250m for this to have much effect. Peter