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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (1169)	12/20/1997 3:12:00 PM
From: Myron David Kor	Respond to of 7041

Dale, Agree with your analysis and as a long realize my position is at more risk than the shorts. I have been long on this co. for a long time and believe in management. The shorts have done nothing to convince me otherwise. Schering's position and the NDA will also re-enforce my position hopefully before the end of January. The formulation will have a clean label with minimal side effects. Pfizer is in the lead if one can call it that however we both know there will be multiple players in this field. We both remember Le Gros Tuna and how he would rant and ave and quote Goodman and Gillman on a daily basis, always for vivus and against viagra and zonagen really no different than Wexler. The bicycle seat reference is quite comical to mention when quoting Goldstein as a hired gun and not to refer to him as a respected member of the Uro community.

To: BDR who wrote (1169)	12/22/1997 1:00:00 AM
From: Bruce Rosen	Read Replies (2) \| Respond to of 7041

Hello Dale. My response to Rick Slemmer explains my take on the buyback. I wouldn't call it odd. It is an attempt to deal with the short term noise affecting this stock, while concentrating on what will build shareholder value, Filing the NDA and eventual approval. There is, no doubt, risk attached to Zonagen and I applaud you for recognizing there is also risk to shorting it. That possibility seems to have eluded some, like Bill and his amen chorus, who are convinced of their infallibility. I have consistently acknowledged the risk in this stock. However, over the past year, that risk has considerably lessened. Owners of Zona last December were awaiting results of the Mexican trials. When they came back showing statistical significance, that eliminated a small part of the risk. Still, said some, the U.S. trials were a different story and that would prove Vasomax ineffective. The results came back and were better than hoped for. That removed a little more of the risk. Bears then lamented about the company's cash position and questioned their ability to fund further studies. The company then raised $72 million in a secondary offering, making itself one of the best capitalized biotechs out there and eliminating a little more risk. Well, the bears said, what about the deal with a major pharma. That was supposed to happen in the spring. It will never happen, they said. The deal with Schering, imho, was an extremely positive event which eliminated more risk. I believe that Zonagen management has performed admirably in building shareholder value and moving inexorably towards FDA approval. You mention that Zonagen has no proprietary product. Well, they have one patent with another pending. The two together, it seems to me, will give them a strong patent position. Schering-Plough seems to agree. The NDA is being prepared and will be filed as soon as practicable. Schering and Zonagen are confident that FDA approval will come. All the milestones which I mentioned above have occured after I bought the stock. I have had no reason to doubt the credibility of management. I see the upside as much greater than the downside here and would say that the shorts have far more risk than the longs at these levels.