To: JanyBlueEyes who wrote (542 ) 12/6/1997 12:40:00 PM From: Gurupup Read Replies (1) | Respond to of 5736
As you all know on Dec 1 CCSI announced that they had entered into a consulting agreement with Fred Frank, vice chairman of Lehman Bros. Frank is a leading health care industry authority. He is being retained to assist in INCREASING shareholder value and to provide investment banking and other business consulting services on an exclusive basis in the field of chromogenic diseases based on color science. The operative word is INCREASING! Who is Fred Frank, and what has his group done in this area over the last couple of years? The following outline might give us some guidance in that area. All of these transactions have occured in last 4 years, and are not in chronological order. ********************************************************************* I tried to set this up CO SIZE Transaction ($Million) Company Size Transaction ($Million) Dentsply Intl. 786 .0 Merger with GENDEX Instrumentarium Undisclosed 50/50 joint venture Picker Nordstar Oy Humana 2,064.5 Spinoff Galen Health Orthopedic Services 250.6 Acquired by NovaCare Alliance Pharm. Undisclosed Corp alliance JNJ CellPro 220.0 Str. alliance Corange Itl Sanofi 1,675.0 Acquisition of ethical pharm. business from Sterling Winth. Somatogen 35.0 Alliance with LLY CareLine 350.0 Acq. Med Trans Eli Lilly Undisclosed Acq.70% int in Integrated Med.Sys. Eli Lilly 4,000.0 Acq.PCS Health Sy RehabClinics 252.3 Acq.byNovaCare Community Health Sys. 157.6 Acq.Hallmark Hea. McGaw 600.0 Acq.by IVAX Boston Scientific 500.0 Acq.Heart Tech. Mitek Surgical Prod. 145.2 Acq. by JNJ Neutrogena 924.0 Acq. by JNJ Sanofi 215.0 Sale of injecatable bus. to Abbott Labs Hoescht Shering Undisclosed Acq.Sunseeds BASF 1,380.0 Acq.of pharm div. The Boots Co. EM Industires 250.0 Equity Inv.VWR Genentech 2,883.0 Renegot.Roche Agr. Genetic therapy 305.0 Acquired by Sandoz IDEC Pharm. Undisclosed Str alliance Genetech Marion Merrell Dow 7,100.0 Acq. by Hoescht Rhone-Poulenc Rorer 2,945.0 Acq. of Fisons Applied Bioscience Intl 483.0 Acq.by Pharm.Prod. Quantum Health Res. 361.4 Exclusive sale Olsten PCI Services 206.0 Sale to Card.Health Baxter 120.0 Joint venture/VimRx Boston Scientific 1,003.8 Acq.Target Therapeutic Baxter Int'l 2,124.8 Spinoff of Allegiance Raychem undisclosed Sale of portfolio of patent and intellectual properties The list goes on and on. I believe that a large portion of the drug industry is contained in the above list. I would like to try and put it in perpsective, if I may. We have gone from the ground floor to the penthouse in 3 years. CCSI started with Janssen-Meyers, a small NY investment banking firm, that kept them alive through the FDA approval. We now graduate to Fred Frank at Lehman Bros. with no stop in between. Why does Fred Frank wish to lend his expertise to CCSI? It may have something to do with the fact that he knows the technology, knows the enormous potential of same, and with his worldwide contacts, and over 30 years of negotiaitng and structuring deals in the health care, and medical device industry, he sees what I see. An incredible upside potential. In the investment banking business, when an expert is brought in, and is highly incentivized to realize the values, what happens? The shareholders are rewarded! It is a very serious mistake to think that Darby is/was having trouble in negotiating a deal. Now by adding Fred Frank to the equation, we have the best of all possible worlds. I remember as a salesman, one of the most important tools was your prospecting list for new customers. The better the list the higher the rewards. Now if I go back to the list above I see some very interesting prospects, and I have the best guy in the world to go on my call with. It doesn't get any better than that. Now the $64,000 question? When, who, how much? When? After all of the bases have been covered, structuring best deal for CCSI. Who? A gorilla- take it to the bank. How much? It will be beyond your fondest expectations, to the bank also. We have diamond in the rough, we have a technology that is capable of producing annuity type earnings, highly visible earnings, for a long, long time. We have a bullet-proof patent, we have industry experts, who will be blessing technology and helping realize its potential. Close your eyes, and think of where this puppy could sell in 1-2 years with $2-3-4-5 earnings per share, on a continuing baisis. A dream, fantasy, pie in the sky, I don't think so.