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Biotech / Medical : Texas Biotech (TXB) -- Ignore unavailable to you. Want to Upgrade?

To: X. Fang who wrote (458)	12/27/1997 10:17:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 834

TBC11251 (an endothelin A receptor antagonist) is another red herring. It originally comes from some work in structure-based drug design done by a struggling company named ImmunoPharmaceutics in San Diego. TXB acquired the company in 1994 and submitted patents for the compound in several Asian countries. TBC11251 was NOT developed in-house! Interestingly, in October 1996, TXB got into bed with a shady Korean company named LG Chemical. LG Chemical purchased 1,000,000 shares of TXB for $5,000,000 with an option to purchase another $5,000,000 worth of shares in a Reg. S deal (isn't it odd how just about everybody seems to get TXB stock cheap...except the general public?) Please read the next excerpt from the company's 10-Q very carefully: <<On October 10, 1996, the Company signed a strategic alliance agreement with LG Chem, a Korean corporation, to develop and market compounds derived from the Company's Endothelin Receptor and Selectin Antagonist for certain disease indications. Upon consummation of the transaction, LG Chem purchased 1,250,000 shares of common stock for $4.00 per share for a total of $5 million. In addition, LG Chem has committed to pay $10.7 million in research payments. Of this amount, $100,000 will be paid on or before December 31, 1996, $1.0 million on each of June 30 and December 31 of 1997, 1998, 1999 and 2000, and $1.3 million on June 30 and December 31, 2001. LG Chem has the right to terminate future research payments if TBC fails to meet certain Agreement milestones, which milestones will be established by the parties in accordance with the agreement. LG Chem will pay royalties to TBC, based on net sales, in those geographic areas covered by the agreement, which include Korea, China, India and certain other Asian countries, excluding Japan. The Company will pay its agents in the contract negotiations, Raymond James & Associates, Inc. and Mitani & Co., Inc., a commission on all future research payments as well as a royalty on net sales.>> Our old friends - super hypesters Raymond James - show up in the middle of this transaction. What a surprise. By the way boys and girls, how many legitimate pharmaceutical firms do you know of that pays its investment bankers, underwriters and outside analysts a commission on RESEARCH PAYMENTS much less net sales!?!!!!? This astonishing conflict of interest should raise a huge red flag when evaluating ANY press release that comes out of the company!!! TXB, ZONA, and ARNX are "in business" for one purpose - and that is to sell stock to gullible investors (i.e. suckers) while purporting to have exciting new drugs under development and in the FDA pipeline. In the meantime, insiders and cronies cash out shares received at much lower prices. Do not put too much faith in the bogus results of clinical trials reported by these companies, nor their "strategic alliances" with big pharms. They have produced zero in the past and from all indications will produce zero in the future. I expect TXB to eventually trade beolow 1 a share. P.S. I am not short TXB stock, but if speculation drives it to a point wher it becomes marginable, I will be.