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Biotech / Medical : Misonix Inc. (MSON) -- Ignore unavailable to you. Want to Upgrade?

To: Candle stick who wrote (606)	1/17/1998 9:37:00 AM
From: Wesley0428	Read Replies (2) \| Respond to of 947

The prevailing opinion is that the Mentor suit won't fly. Therefore we can assume the move for a temporary injunction won't fly either. Regarding the suit, I can recall two unofficial opinions by knowledgible persons who felt the suit wouldn't hold up. One was an attorney who read the two patents in question and pointed out some obvious differences. The other claimed that Paresi, the actual holder of the Mentor patent, shopped it around before licensing it to Mentor. Misonix supposedly passed on the on the opportunity to license it because they obviously didn't feel they needed to. I know MDA evaluated the likelihood of a Mentor claim before ever licensing the Misonix patent and obviously chose to proceed. But the best argument I've heard is that neither patent will stand up because ultrasound was probably used for emulsifying soft tissue before either patent was granted. Regarding Mentor's request for a preliminary injunction, they have already shot themselves in the foot by waiting 8 months to file. The concept of a preliminary injunction is that if you don't get it, irrepairable damage will be done to your business. Hard to make that case when you just waited 8 months after filing the original lawsuit. Mentor's move appears odd and, apparently, caught everyone all off guard. Makes one curious about Mentor's timing. If you recall, the original Mentor suit was timing to coincide with a large trade show. It was widely suspected that their timing was intended to disrupt Lysonix sales efforts at that show. What wasn't widely known at that time was that the suit was perfectly timed to disrupt the closing of a large private placement that MDA was about to close. Because of the suit MDA had to delay the private placement, which was eventually closed successfully. That delay, in raising capital, may have impacted MDA (Lysonix) ability to ramp up their salesforce and marketing efforts. That may have been the real reason for the timing of the Mentor suit. So now we have Mentor filing a rather odd delayed request for emergency injunctive relief. Maybe not so odd, because guess what, MDA is about to finalize a deal to merge with KIDZ, a publicly traded "shell" company, and thereby become a publicly traded company. Think this latest move by Mentor might throw a kink in MDA's plans? How convenient. Of course the bottom line is no doubt that Misonix stock will probably take a good hit on Tuesday. If you believe the move by Mentor will fail, this could actually be viewed as a positive development. I expect Q3 to be a good one for Misonix, with the $1.1M fume enclosure order likely shipping and USS continuing to ramp up. Now, on top of that, we may get an indication of the weakness of the Mentor suit. They will likely have lost their motion for a preliminary injunction by sometime in March. If Mentor loses this motion in 6 -8 weeks, we'll look back on this day and thank Mentor.