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Biotech / Medical : MEDX ... anybody following? -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (725)	7/21/2003 6:43:17 PM
From: Icebrg	Read Replies (2) \| Respond to of 2240

>>It is hard to believe that any financial person in the biotech field could be so stupid as to not fix the convert price ahead of time>> That is the normal procedure. What was not normal was the very heavy loss in the share price following the announcement. What I have seen with other recent convertible issues, a loss of 10% might be more normal. >> I have also never heard of an option to purchase 25% more on a convertible issuance.>> That appears also to be the standard procedure in cases like this. ICOS and CEPH for example did also offer 25 % extra in their recent offerings. Although ICOS additional offer was not fully subscribed. Having said that, Medarex's issue seems to be one of the worst managed debt offers I have seen during this financing window. No doubt they needed desperately to extend the maturity of their debt structure. But they came in too late with the market already softening. If this means that they have secured survival until 2010 or if it means that they will be able to hold on to MDX-010 for a longer period of time before outlicensing, I suppose it was worth it. Even if the execution appears to have been extremely poor. Erik