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

To: Miljenko Zuanic who wrote (316)	12/12/1997 2:04:00 AM
From: John Dwyer	Read Replies (2) \| Respond to of 353

>>I hope you will agree that target validation in drug development is as important as identification of the drug which will selectively interact with target. Because of the complexity of diseases pathology genomic discovery (target selection) can improve probability that drug will have effects in diseases control. Today strength of the genomic bt companies speak for itself.<< Yes, I agree. I also agree that the valuations of many genomics companies reflects the value of this approach. My question is why did ARRS feel the need to _buy_ a company? Why not just partner? There is also a fair degree of overlap in the programs between the two companies (osteoporosis, etc). It would have made perfect sense to partner with SQNA to find targets. By buying SQNA, they only save the 10% (or less) royalty, right? They still have the development costs and they will still, in all likelyhood, have to partner again later to fund development into Phase III. It really doesn't make sense to me. I still bet they were looking for something in particular. Something in SQNA's pipeline looked good enough to buy outright... I haven't had time to really look for what it might be. I think it will be difficult for ARRS in the near-term. These types of buyouts are usually difficult to digest (at least for companies outside biotech). Until I have a clearer picture of what the long term plan involves, I can't really say how this will affect them several years out. John