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Biotech / Medical : AMLN (DIABETES DRUGS) -- Ignore unavailable to you. Want to Upgrade?

To: Doorman who wrote (1635)	9/1/1999 1:19:00 PM
From: arnie h	Read Replies (1) \| Respond to of 2173

Hi Doorman: >can you elaborate on the large loss carry forward amounting to about $3.00/share not being reflected in AMLN's price. I don't understand what you are referring to.< Sure. The last time I worked this out the loss amounted to about $8 a share (it's higher now and increasing). With corporate tax of about 38%, this translates to a savings for the acquiring company of about $3 a share. In order to take advantage of this, the acquiring company has to be able to write it all down within the first year and there has to be an expectation for making a profit. As a result, the acquiring company has to be a major outfit so it has enough profit for the offset and FDA approval would be needed to provide the expectation of a profit. Yesterday's news leads in the direction of FDA approval at some point since the real question was with Type 2 patients not Type 1. Thus it seemed to me that a large company in the field could well step up to the plate at the right time. This outfit would save $3 a share in taxes and acquire the commercial potential for Pramlinitide and Exendin besides. The point I was making is that the potential of the 2 drugs is only valued at some 50 cents a share (todays's price) above the value of the tax savings. Arnie