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

To: Dauntless who wrote (1450)	12/31/1997 9:44:00 PM
From: Bill Wexler	Respond to of 7041

The Zonagen (ZONA)/Texas Biotech (TXB) circle jerk. I now turn your attention to the well-organized, and professional-looking web page of biotech superstar Zonagen: zonagen.com Read it carefully, particularly the section about products under development. Is this a company you would pay $260 million for? Note that David McWilliams, president of a bizarre, worthless company called Texas Biotechnology Corporation (TXB), sits on Zonagen's board. It is extremely interesting to note that TXB's capitalization structure has amazing parallels to Zonagen. Just like Zonagen's fortuitous deal with Scering-plough, TXB also has a licensing deal with a reputable firm - SmithKline, who also happens to be an early investor. sec.yahoo.com We all know that fine companies like ZONA and TXB are more concerned with advancing modern medicine than lining their pockets. We can rest assured that they wouldn't resort to dealing with Wall Street bottom feeders......right? worth.com The Zonagen/TXB circle jerk....part II This is a post I made on the TXB thread regarding TBC11251, a worthless drug that is being touted by that company. TXB, ZONA, and ARNX have all been manipulated by the same group of Texas investors and Raymond James - a shill for ZONA - also plays a prominent role in distributing false propoganda about TXB. Now you'll find out why.... ---------------------------------------------- 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.

To: Dauntless who wrote (1450)	12/31/1997 9:49:00 PM
From: Bill Wexler	Respond to of 7041

The Zonagen (ZONA) and Texas Biotech (TXB) frauds. An investor in one or both of these companies must be the most patient person on Earth. Both companies have been around for years and have never delivered any viable products - but for some odd reason they have fueled plenty of speculation which has put hot air under their stock prices. There is a good reason for this. Both companies are simply vehicles for selling worthless stock to victims. Both companies are actively engaged in hiring stock touts, shills and consultants whose sole purpose is to talk up the company (i.e. lie). Their R&D activities are simply worthless facades. Their PR however, is top notch. IMO, Zonagen will either: a) Never file an NDA for Vasomax. b) Delay the process as long as possible. Insiders at these companies understand that it is much better to have a lack of real information available than to expedite the processes where unbiased observers and government panels have an opportunity to shine a light on their activities. Lack of information fuels speculation - which supports stock prices as the vultures cash out. Since Vasomax is an ineffective medication for ED, it behooves management to elude public scrutiny as long as possible. They understand that an FDA rejection will send the stock to the floor in minutes. Unfortunately, enough bad information has now leaked that the stock has plunged over 50% from its all-time high. This does not make the stock a "buy" or a "bargain", on the contrary, its a clear warning that something is seriously wrong. Now you understand exactly why the company scrambled to announce a bogus stock buyback (highly unusual for a developmnet stage company with no revenues/earnings). Note the evasive language of the press release. It is clear that this is simply another lie in an endless string of lies. Much is made by the touts about the licensing agreements between Zonagen and Schering and Texas Biotech and SmithKline. It is important for the investor to understand that these sort of agreements are done very frequently with development stage firms. The in-house scientists at the larger companies do not conduct their own tests on these drugs; rather, the marketing and sales arms rely on data from the smaller companies. Large pharms make these sorts of deals all the time fully understanding that the vast majority will go nowhere, but hoping that a successful drug will make up for the rest. In essence, they can be suckered just like any other investor. Finally, the investor should understand that the shills and stock touts that are hired by frauds like ZONA and TXB will do and say anything to sell the stock - because they are paid with stock themselves. These people will cold-call, issue hype under the guise of "research", and troll internet discussion forums in order to separate you from your money. In my opinion, they are loathsome, crooked bastards who will sell their own grandmothers for the sake of a buck...and they certainly don't give a damn if you lose your life savings when these stocks inevitably crumple. worth.com