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Biotech / Medical : VISX -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (1619)	2/22/2000 4:42:00 PM
From: MGV	Read Replies (1) \| Respond to of 1754

Charlie - This decision certainly is laden with implications but, based on the way the market has been moving it makes sense strategically. The alternative was to continue to alienate customers and erode the strong relationships they have built. This will make it tougher for competitors to take share. It also appears to be a preemptive strike to a recognition of an eroding and not easily defended patent portfolio. It is great for the corporate centers. If there truly is high demand elasticity, then the move will pay off for VISX. Who knows what the market will do with it tomorrow. I think it makes VISX better. Buying back about 15% of the float won't hurt. Downside should be minimal but I'd like to hear more background regarding the decision. It certainly is a dramatic one.

To: Charlie Smith who wrote (1619)	2/22/2000 4:46:00 PM
From: Krikor	Read Replies (1) \| Respond to of 1754

Charlie, The PR looks good, Hopefully we will see some positive action. Thx for the PR Krikor

To: Charlie Smith who wrote (1619)	2/22/2000 4:57:00 PM
From: mts362	Read Replies (1) \| Respond to of 1754

Well, VISX finally caved in. That $250 fee couldn't last forever - the market's been telling us that lately. Some preliminary calculations: most analysts put VISX procedures in 2000 around 1 million * $250 = 250mm in license revenue (old price) Take this down to ~$110mm with the new price (1.5 months' procedures have already been done). My rough calculations indicate that estimates will have to come down to about $1.10 for 2000 from $1.62. VISX says they are doing this to grow the market, but keep in mind: This action (by itself) will only lower the total procedure fee from the $1500-$2000 range to the $1400-$1800 range. Is that really going to bring in a rush of new patients?? VISX is doing this because they have to, not because they want to. In analyst meetings with the CEO (Mark Morgan), he had made it clear, as recently as December/January, that they didn't want to reduce the fee. They caved in so they wouldn't loose share. Just a quick analysis - I'd be interested in hearing anyone's thoughts on the stock. Disclosure: I have no position in VISX, although it is getting attractive at these levels. MTS