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Biotech / Medical : Nuvelo(NUVO) -- Ignore unavailable to you. Want to Upgrade?

To: dr.praveen who wrote (58)	1/6/2006 8:19:41 PM
From: Arthur Radley	Respond to of 140

Dr. P, Dew has questioned NUVO from the get-go, all the while he was pushing a biotech stock trading for around a $1.00 as a better investment. Bottomline, I've doubled my money with NUVO and his sure fire winner is still floundering. His logic and statement leaves me scratching my head as to what he is talking about.. 1) "because the deal NUVO just struck with Bayer is not all that different in its aggregate economics from the arrangement that NUVO had with AMGN." In my opinion that is a stupid statement...in the first place this deal with Bayer is for European rights and NUVO still controls the US rights to the drug. Plus, AMGN never gave them a penny of money for milestones..the money was going from NUVO to AMGN, whereas, Bayer gave NUVO more than chump change in the deal and will continue to pay NUVO milestone payments plus royalties up to 37%. Bayer is committed to paying NUVO up to around $500 million in milestones whereas AMGN was on the receiving end before giving the drug over to NUVO. Plus, with new funds committed to NUVO for expanding the drug into other indications is another plus for NUVO. To say that a former arrangement(AMGN) is not different when the fund transfer was going away from NUVO to now having a major European company sending money to NUVO does in no way seem the same as Dew would have you believe. As for his less than astute observation that the euphoria over the Bayer deal appears to be dying down....juxtapose this against the fact that in four trading days in the New Year the stock is up about 60% and tell me that most stocks that jump so dramatically that all pause from their upward movement. And just for the record, the stock moved up again today...so I guess I like this non-euphoria that Dew sees. When you consider that NUVO has had at least four upgrades by major brokerages over the deal, ask DEW how many have upgraded his penny biotech recently.

To: dr.praveen who wrote (58)	1/7/2006 11:49:53 AM
From: Arthur Radley	Read Replies (2) \| Respond to of 140

Dr. P, My comments last night were off-the-cuff, so let me give you more details to the AMGN/NUVO/Bayer deal and you tell me if the Bayer deal is no different than what NUVO had with AMGN. 1) Due to AMGN's largesse and non-desire to further develop ALF they basically gave the drug to Dr. Rathmann and NUVO. No money exchanged hands and the arrangement was a 50/50 co-development deal going forward. This was in 2002. 2) In October of 2004, AMGN opted to exercise their right to convert to an exclusive license agreement(royalty) and give NUVO world-wide rights to develop and commercialize alfimeprase in exchange for the payment to AMGN of previously negotiated milestone payments and future royalties. 3) With the start of Phase III testing in April, 2005, NUVO paid AMGN a $5.0 million milestone fee in May of 2005. Additional future milestones payments under the agreement could total up to $35.0 million being paid to AMGN. Now Compare that to the Bayer deal: 1) NUVO gives Bayer rights to commercialize in all territories outside of the U.S., NUVO will receive royalties, milestone payments totaling $385 Million and development assistance to expand Alfimeprase into indications that are far greater in importance than for this first indication that it is current involved with Phase III testing. 2)Bayer's upfront payment to NUVO is $50M, whereas, NUVO was in contract to pay only up to $35M in total milestones to AMGN. The mere monetary assistance that Bayer is willing to pay NUVO to expand the indications into such major areas is worth the deal...remember, NUVO will get full revenue benefits for alfimeprase sells in the U.S. and merely have to pay AMGN a paltry royalty...not the original 50/50 split. Even Stevie Wonder should be able to see this deal for NUVO is fantastic, and not as Dew would have you believe! But I will let you decide.