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

To: Biotech Jim who wrote (554)	8/5/1999 12:50:00 PM
From: aknahow	Read Replies (1) \| Respond to of 3158

You are too logical. Merck is run by people not computers. For what ever reason they feel is valid they made a decision to buy SIBI. They probably did not offer to pay what they, again for whatever reason, thought it was worth. The cost as planned is a minor amount of money. The money involved is a smaller amount than the egos involved. Once the decision to buy SIBI has been made these egos are not going to give up so easily. Of course there is no way to do what you say nor prove your statement wrong. You say "only with that information can one decide how much more they will be willing to pony up." Sounds good but am sure even the people in MRK who know exactly why they want SIBI have a wide range of what exactly makes sense as a final last offer. And I would think that outside consultants would place the value of SIBI to MRK at totals that vary by as much as 100%. Lets see how this plays out. I would not be surprised to see the offer increased by 50%. Not long, nor short, just interested in the process.

To: Biotech Jim who wrote (554)	8/5/1999 9:09:00 PM
From: tommysdad	Read Replies (1) \| Respond to of 3158

Quoted in BioWorld Today on Tuesday was Gwen Fisher, corporate communications from Merck: "Basically, the reason we chose Sibia is because they have a high-quality staff doing excellent work in central nervous system [CNS] disorders. It will give us a U.S. presence in CNS research." and this (WRT BMS and LLY collaborations): "We intend to honor all of Sibia's contractual obligations. We didn't do this deal in the hopes of getting any products. We see the value in their staff and technology." So 1508Y and 1553Y stay with Lilly. The Lilly collaboration continues, unless of course LLY wants to back out.