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Biotech / Medical : ARRIS - Another partner -- Ignore unavailable to you. Want to Upgrade?

To: biopicker who wrote (254)	11/23/1997 10:42:00 AM
From: CYBERKEN	Read Replies (1) \| Respond to of 353

Very nice presentation. An investor in development-stage biotechs could not help but find this combination very exciting.

To: biopicker who wrote (254)	11/23/1997 1:44:00 PM
From: Andrew H	Read Replies (1) \| Respond to of 353

Thanks biopicker for a most excellent and articulate analysis of Axys. I agree with much of what you say. Yes, the company has tremendous potential. Yes, ARRS is oversold which is what the market often does to biotechs that will not have a product on the market for 4-5 years. Too many years of uncertainty. Yes, it has gone down for the wrong reasons. As for Wall Street understanding it, that may just have to wait until profitability is on the horizon. I hope you are right and I am wrong. As for Walker maximizing shareholder value, I am wondering just what that means. ARRS is sitting just above its 104 week lows. The value may be there somewhere, but for the shareholders that have been holding for two years, it must be a real leap of faith.

To: biopicker who wrote (254)	11/24/1997 3:14:00 AM
From: John Dwyer	Read Replies (2) \| Respond to of 353

Biopicker, Very nice summary. I agree with most of what you said and feel that you hit several important points, namely, the increased cash position and increased revenue from the added collaborations. The shares outstanding have increased as well, correct? So while it may not add so much _direct_ value, I do think that the _potential_ for value is much higher in the combined company. After all, that's what we are buying today, discounted future cash flows. I still don't quite understand why they had to _buy_ a company. Why not collaborate? They might have avoided the "indigestion" that comes from buying someone that is roughly the same size. However, it worked out well for Arris when they bought Khepri, right? They inked a deal with Merck for cathepsin K worth more than what they paid for all of Khepri. So, who knows... I should say that part of the reason that ARRS is low is because their lead product, APC-366, is in deep trouble. The second generation tryptase inhibitor looks much better but is further behind. I wish they would just admit defeat with APC-366 and move on. John