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Biotech / Medical : DPII: Discovery Partners Int'l -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (26)	10/22/2005 1:48:15 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 111

As DPI shares hit a new low, it is time to review, what exactly resides with DPI (besides the cash). These are just my notes. (The balance sheet is the easy part, trying to remember if 1+1+1+1+1+1 equals six or perhaps just three, is the tricky part.) what is left: ChemRx Advanced Technologies Xenometrix Discovery Partners International "LLC, GmbH" (chemistry and screening services, assay design and µARCS--if that is every developed. DPI also does some work for NIH for storage of chemical libraries) Some things have presumably been stripped from the inactive departments listed below: Structural Proteomics (substantially inactive)--this was software and such I think Systems Integration Drug Discovery Company (substantially inactive) IRORI Discovery (plus Crystal Farm and Universal Store) went to Nexus Biosystems Finally, I tend to ignore total assets. Cash is all I care about. Indeed DPI has said something about impairment charges of up to $5M for various things that may not generate any business (the gene expression service and µARCS). If DPI does nothing for the rest of the year, they should finish with 75M cash/short term. If I bought this as an IPO, I certainly would not be too concerned about the valuation--the business is currently valued around minus 5M. No hype in these shares. Shareholders who have held this for awhile proabably have some reason to grumble of course... DPI has not burned through a lot of cash however--considering that five years has gone by post IPO, they've been pretty frugal, with the exception of management salaries etc.