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Biotech / Medical : Lidak Pharm. [LDAKA] -- Ignore unavailable to you. Want to Upgrade?

To: luis a. garcia who wrote (835)	1/15/1998 7:45:00 AM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 1115

Today will be more interesting than you thought Luis, LIDAK Pharmaceuticals Receives Major Financing Proposal from HealthMed, Inc. LOS ANGELES, Jan. 15 /PRNewswire/ -- HealthMed, Inc. announced that it has submitted a proposal to LIDAK Pharmaceuticals (Nasdaq: LDAKA - news) of La Jolla, CA that could provide an infusion of between $80 to $130 million dollars into LIDAK over the next 18 months. HealthMed's proposal was initially presented in general terms to LIDAK at its Board meeting on January 10, 1998, and was confirmed in writing to the Company on January 13, 1998. HealthMed's plan includes acquisition of control of the voting stock of the Company and states their intent to change the current structure of the Board of Directors of LIDAK. The financial core of HealthMed's proposal is based on securing $80 to $130 million dollar financing on a non-dilutive basis in three stages over the next 18 months, with the first stage of up to $30 million dollars contemplated for completion in approximately 30 days after acceptance of the proposal by LIDAK's board. The infusion of capital into the Company is being made to accelerate certain existing development programs and to assist in the marketing and distribution of LIDAK's topical anti-herpes drug, LIDAKOL(R), which was recently submitted to the United States Food and Drug Administration (FDA) for marketing approval. The second stage of an additional $30 million dollars could be infused within 4 to 7 months upon receipt of an approvable letter from the FDA of topical LIDAKOL treatment of oral herpes. The third and final stage of between $50 to $70 million dollars is contemplated within 9 to 18 months based on progress in ongoing development programs and the marketing and distribution support requirements for LIDAKOL. A committee of LIDAK's board has been established to consider the merits of HealthMed's proposal. In a related transaction, David H. Katz, M.D., president and CEO of LIDAK, sold approximately 30% of his LIDAK holdings to HealthMed and agreed to place the remainder of his LIDAK holdings into a voting trust with HealthMed as the trustee, in order to facilitate HealthMed's desire to acquire control of the Company's voting stock. Commenting on the announcement, Dr. Katz stated, ''We are very fortunate to be able to create this new partnership with the principals of HealthMed Inc. and its affiliates. These are individuals of exceptional qualities in business and in their concerns for advancing innovative medical technologies for the benefit of patient health. I am particularly excited about the opportunity that this partnership will provide for the future growth of our Company and the potential for LIDAK to maximize shareholder value.'' T. Daniel Neveau, HealthMed's Vice-President of Development, stated ''We have come to appreciate, in a very short time, the enormous potential value of LIDAK's drug and technology portfolio and the strength and accomplishments of the Company's executive management and scientific teams with whom we look forward to working closely. We are excited about creating the foundation to enable LIDAK to rapidly realize its charter of completing the development and distribution of all of its revolutionary products and technologies.'' HealthMed, Inc. is affiliated with several large health care companies, including National Century Financial Enterprises, Inc., one of the largest health care financiers in the country with assets in excess of $1 billion dollars. LIDAK Pharmaceuticals is developing therapeutic products against virally caused diseases, allergies and asthma, inflammatory disorders and cancer. SOURCE: HealthMed, Inc. Feedback?