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Biotech / Medical : Neurobiological Tech (NTII) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (694)	10/28/1999 10:18:00 PM
From: JMarcus	Read Replies (2) \| Respond to of 1494

Do you suppose the price increase today was in anticipation of the following post-closing news release? biz.yahoo.com Neurobiological Technologies, Inc. (OTC Bulletin Board: NTII - news) today announced that its alliance partner, Merz + Co. GmbH & Co. (Merz) has concluded two major Phase III trials in vascular dementia with Memantine and that the initial results look promising. A total of 900 patients were enrolled in multiple sites in the UK and France. The trials were designed to investigate improvements in cognition, a major focus of drug therapy for dementia. Merz plans to disclose data from the trials at the International Stockholm/Springfield Symposium on Advances in Alzheimer's Therapy Conference to be held in Stockholm in April 2000. Merz's Phase III program for Memantine as a treatment for Alzheimer's disease in the United States is continuing. NTI® recently announced the completion of enrollment of the 421-patient Phase IIB Memantine trial in diabetic neuropathy. The results of this trial are currently being analyzed and will be announced in December. NTI and Merz are also sponsoring a major trial in AIDS related dementia in cooperation with the National Institutes of Health. Marc

To: Dr. John M. de Castro who wrote (694)	11/11/1999 7:06:00 PM
From: JMarcus	Read Replies (1) \| Respond to of 1494

John, I'd be interested to hear your views on whether the dilution was worth the $4.2 Million. By my calculation, the number of issued and outstanding shares will be immediately increased from 7.56M to 12.81M. Warrants for 2.1M shares at $1.75 could bring in an extra $3.675M in cash, but would increased the number of issued and outstanding shares to 14.91M. I think this was a reasonable solution to NTII's financial problems. At the meeting today, Freiman assured us that he believes there will be no further dilution: once the Phase IIB results are released, the company should be able to nab its big pharma sponsorship (assuming the results pan out as expected). Freiman said that he really needed that bankroll in order to strengthen his negotiating position with both Merz and potential big pharma suitors. As long as he had nothing in the bank and owed Merz $1.2M (the loan is being repaid from the proceeds of the private offering), his credibility as a negotiator was severely weakened. He gave up a lot to procure that credibility, but I think it was worth it. Marc