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Biotech / Medical : IVAX Insider Trading -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (355)	12/27/1997 11:20:00 AM
From: 5,17,37,5,101,...	Read Replies (1) \| Respond to of 756

Randy, SI is apparently the de facto IR for Ivax because of IR's reticence. Ivax did not have approved many drugs in 1997. But because it is a drug company, I presume they have been busy working on drugs for approval and I really expect a spate of new drug approvals over the next three months, including Paxene in G.B. I also read that dubious Yahoo! post, but cannot confirm the information and I seriously doubt its veracity because Ivax mid level managers have NO history at all of acquiring shares. If true though you can tack on another 15% to 20% to Ivax stock price based on their actions. If they accumulated on the open market, the best way to confirm this would be to subscribe to Newsedge, Bloomberg, or FederalFilings. If they are exercizing options, my service should cover it though it's dreadfully late in reporting. If these employees are so low on the totem pole that they are not required to report the info., then IR would be the only way to confirm. The person that posted that info. could give ivax.com email addresses for a few of these inside buyers and we could ask them ourselves.;) Tenpoint, Who would like to acquire Ivax? I believe Glaxo is the best candidate because of Ivax's presence in G.B. We know Mario Gabelli is accumulating shares since summer 1997. Ivax is losing money for several reasons: 1) poor product mix, 2) high overhead, 3) dearth of new drug approvals. A company with the ability to execute and place the drugs on the market could find Ivax's assets very enticing at a price, IMHO, somewhere between $12.00 and $17.00 per share -- see recent report by Robert Cohn. Is the repurchase viable? Yes. Recent quarterly report revealed $64 million in operating cash flow for 1997. Recent releases indicate $8 million in savings from cost cutting and $21 million from the sale of the gel cap business plus $5 million per year in savings. Assuming they have been busy elsewhere cutting costs, I see increased cash flow here of $34 million. At $7.6/share, 5 million shares would cost $38 million. They would have plenty of cash available to develop drugs. Will they actually repurchase the shares? That is another question. Share repurchases in many instances are never executed regardless of the reputation of the company's management.