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Biotech / Medical : Abgenix, Inc. (ABGX) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (244)	7/2/2003 7:47:54 PM
From: keokalani'nui	Read Replies (1) \| Respond to of 590

Wall Street can repackage, strip, spin-out, fractionate present and future interests, finance an LBO, underwrite an offering, incubate in an LP, dividend up or out, sell assets at auction, or take private--just to name a few tools in the shed. I don't think there are any limits to what can be offered to amgen management. If all amgn wants is a 1/2 interest in a drug and some vats, no problema. I never thought the mouse companies had any business doing drug discovery myself. If this happens, I'd seriously consider shorting imcl.

To: Icebrg who wrote (244)	7/3/2003 2:10:58 AM
From: Miljenko Zuanic	Respond to of 590

<<I remember how disappointed you were after ASCO>> I continue to be. Not with results itself but with the way they presented results to public. And I assume they know more. <<To ABGX the production facilities are less of an advantage. They will cost them a lot of money. Which they don't have enough of. >> I do not agree. AMGN never have manufacturing capacity shortage, until they got one from IMNX. And they still have problems. And they are loosing money because of it. And it will not be solved in near future. So, they rented DNA excess capacity in 2002. At that time DNA was not enthusiastic about several mAb products candidate. Now, with three new mAb coming to market, two old one continue to grow, several mAbs in clinic and suddenly they may experience capacity shortage. They will want back what they rented to AMGN. AMGN did not have plan for significant manufacturing addition. Also, ABGX cancel contract with Lonza, so going forward they will manufacture ABX-EGF and other candidates. In any events AMGN will look positively about ABGX currents plan. For instance if (and this is very stretchy IFFFFF…) AMGN want to file NDA based on data from two PII CRC, or maybe fast track for RCC (starting pivotal trial in near future, front line RCC) they will need ABGX capacity to produce ABX-EGF. You can not built and register new plant (commercial scale) in two-three years. You need more. ABGX may and will continue to spent $$$ on manufacturing. It may never recover this investment. But, without it they lost even before they started. BTW, I do not believe that AMGN will take ABGX, but as I said it does make more sense than some other choices. They do not need to go after near term revenue, it will be more positioning themselves in new field (in this case oncology). Miljenko