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Biotech / Medical : Alteon (ALT) -- Ignore unavailable to you. Want to Upgrade?

To: pat w. who wrote (164)	12/4/1997 10:28:00 AM
From: Mac S. Giballa	Read Replies (2) \| Respond to of 318

Good deal for Alteon, they held out, and were rewarded with a pot of gold. $8 a share is now super cheap for this stock. I think it will run to $20 next year.

To: pat w. who wrote (164)	12/4/1997 5:33:00 PM
From: Rudy Saucillo	Respond to of 318

This is certainly a blockbuster of a deal, comparable in $$$'s (excluding royalties) to the recent LGND/Lilly deal. :-) Speaking of royalties, I would expect solid double digits for aminoguanidine. It appears that ALTN got exactly what they were looking for. That is, a significantly better agreement than the old HMRI deal for a smaller piece of their technology. They wanted to partner aminoguanidine and 2nd generation AGE inhibitors while retaining their AGE cross-link breaker technology for themselves. And that's exactly what they did! My sense is that much of the risk due to the HMRI bailout and last year's "adverse events" has been mitigated. GNE would not have agreed to $36 million up front and up to $200 million total if there were significant concerns with data in hand. (Of course, surprises can still happen in the clinical trials. Look at AMLN/JNJ for example.) We really have to give Mauzey & co. a hell of a lot of credit for preserving shareholder value through this difficult period. As a long time ALTN follower and a shareholder since last Feb., I couldn't have asked for a nicer Christmas present! Cheers!! Rudy