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To: Mark Bartlett who wrote (8215)	12/11/2001 10:45:13 PM
From: axial	Read Replies (1) \| Respond to of 14101

Hi Mark - Been trying to catch up on the DMX story. I thought for now I'd confine my questions to SI rather than SH ;- ) "The fact that the FDA is up inspecting the plant says they will approve -- it is the last step in the process indicating that safety and efficacy have been accepted." That's been my take, too. "As far as dilution goes, with a company to have 2 pipeline drugs at post phase III points with only 47 million shares out is quite a feat. Even if they had to issue 5 million more share, it still would be very low." Agreed. The number of shares OS is low for this kind of company. However, this leads to a question about the goings-on with Acqua. What is the source of the restricted shares? Have they been released (as restricted shares) by DMX, to be resold into the market by Acqua, to get cash without dilution? If so, despite all the grousing, this strikes me as a not-so-bad deal - except... I'm not quite sure I understand it. DMX approaches Acqua, saying cash is needed. DMX hands over a whack of shares, and agrees with Acqua that they can be sold at a predetermined price range, with other expenses, and sidebars, so everyone's palm gets greased. Acqua, as is its practice, immediately begins flogging shares in proportion to the cash draw. The price drops, presumably until it passes out of the predetermined range, or the extent of the cash draw is satisfied (whichever comes first) then Acqua stops selling, until the next cash draw. Depending on whether or not these stories about the FDA inspection are true - this could almost be a buying oppo. Or, not. I suppose a lot depends on the company's appetite for cash in the next, say, month or two. As a short-term expedient, it may be all right - especially if the company expects good news shortly. I'm just not clear on the source of the shares. Any comments? Regards, Jim

To: Mark Bartlett who wrote (8215)	12/12/2001 11:32:02 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 14101

<I guess the only question one need ask is -- can Pennsaid capture 5% of the US market> Hello Mark, It seems to me that 5% is very low for what is supposed to be the best drug in its sector. What would be a more realistic target ?

To: Mark Bartlett who wrote (8215)	12/12/2001 4:35:30 PM
From: Tom Drolet	Read Replies (1) \| Respond to of 14101

Mark: Thxs for the reply. On this one we do disagree. I truly believe that the dilution and resultant manipulation (or some would say clever way open to free traders), though an "innovative way" (gulp) to stay independant, is not wise--or fair to the market--given the obvious behaviour of the VC firm. I will sit it out until more reports come in from the UK on sales. The issue is FDA approval. It is NOT in the bag--and just a matter of time. They always have the right to weigh all the evidence including the results of all stages of investigation. I still believe the risk profile is high on our beloved DMX at the moment. Best regards Tom D.