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

To: keokalani'nui who wrote (1133)	6/6/2003 7:45:30 PM
From: Icebrg	Read Replies (2) \| Respond to of 1834

Wilder This is a little bit of a mystery here. Neurocrine in their latest report said that they had 300+ mUSD in cash and short-term investments and they have another 300 mUSD coming from Pfizer in short-term milestones. In addition their cash-requirements are coming down as now Pfizer is responsible for all Indiplon-related development costs. And once the product is on the market royalties and co-promotion revenue will start to roll in. Following the launch of Indiplon Pfizer will grant NBIX a 175 mUSD short-term credit facility. Neurocrine's cash position if they get Indiplon past the FDA will become almost embarrassing. So, one has to ask, what are they going to use another 200 mUSD for? The only explanation I can think about is that they are taking out an insurance policy against the possibility that Indiplon will fail. Their market cap is only 1,8 billion USD (I know - it is a lot). If they continue to amass cash in this way they will soon (within a couple of years) find themselves in the embarrassing situation of selling almost below cash. Well, not quite, but you get the idea. There will be a new generation of Uncle Scrooges over at NBIX's company headquarters. Unless they have a secret plan on how to spend it all. They will most probably end up as the object of a Pfizer munch, but that is another story. What I would love to see would be a CEPH - NBIX merger. Putting together one great sales machine with a topnotch research engine. And well funded. That would be something to write home about. Erik