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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (10572)	6/28/1999 3:18:00 PM
From: aknahow	Read Replies (1) \| Respond to of 17367

Yes and no. Remember there are several things we do not know. what is the percentage of royalties? As important, what is the size of the commitment to develop new products? Without knowledge of at least this additional information it is not possible to know how good a deal XOMA got. However, I do think that XOMA understands the business of business. While high up front and milestone payments might make the stock pop right now, developing approved products should add more to the value of XOMA than any reasonable attractive set of milestones would, in the absence of the same commitment and same royalties. But since we don't know what was agreed to, nor even if we did, would we know how the terms would vary as the amount of milestones varied, one has to simply wait to see what happens due to the agreement. Wordy way to say, I don't have a clue, if this was just a good deal or great deal.