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Biotech / Medical : Neurocrine Biosciences (NBIX) -- Ignore unavailable to you. Want to Upgrade?

To: Miljenko Zuanic who wrote (515)	2/12/2000 5:05:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 1834

>> Like MLNM? But, let this for now put aside. << No, I refuse. <g> We are currently in a different world. NBIX is one of biotech's strongest, most-leveraged business plans. One should look at the market cap of SQNM. One should look at this week's secondary from ABGX. This is a rare opportunity for biotechs to escape the traditional grasp of pharma. They can charge toward "independent pharma" status, and lots of very wealthy, big-currency companies need the sort of leverage that NBIX has. This is the time to grab the resources to make possible what has never been possible before, to take early pipelines through development without the deep pockets of pharma. Look at what ABGX did this week. Their schlepper, CEGE, made $200 million from selling 29% of their ABGX shares. LET ME REPEAT THAT..... CEGE RECENTLY AGREED TO BE PURCHASED BE GENZYME. THE DEAL FELL THROUGH, DUE TO THE STRENGTH OF ABGX SHARES. GENZYME HAS LONG BEEN A CASH-RICH BIOTECH, WITH CURRENT CASH AT ABOUT $500 MILLION. THIS WEEK, CEGE MADE $200 MILLION FROM SELLING 29% OF THEIR ABGX SHARES. Everyone associated with this sector should stop and think about what it means to run through this liquidity window. It's a window the likes of which the sector has never seen before. The MLNM-LKST deal was brilliant, but even better deals are possible at this time, and NBIX is as leveraged to take advantage of it as any company in the sector. >> Merge, not munch, is an option << Of course. We can now watch, if management teams set ego aside, the creation of entities that can challenge a Merck or a Glaxo Wellcome or a Novartis within 10 years. We started discussing this strategy in the BVF thread about 1 1/2 years ago. However, at that time, it would have been necessary to give the ops away to very, very deep-pocket VCs. Good companies can now use Joe Public's internut profits. Merge strong-currency companies with the strongest of "drug" (to differentiate from chip or database) pipelines, sell some shares of the merged entity, grab a few additional small biotechs, and go after dominance in detail land. BTW..... private companies are going to get gobbled, right and left.