Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : IPIC -- Ignore unavailable to you. Want to Upgrade?

To: WeirdPro Randy who wrote (985)	1/21/1998 7:39:00 PM
From: NeuroInvestment	Read Replies (4) \| Respond to of 1359

While an AHP analyst I spoke with estimates the likelihood of a consummated AHP/SKB deal at no more than 60%, there clearly is a message here about liability. No company doing due diligence (as SKB has surely done) would walk into a situation where there might be multi 'billion dollar liability.' And AHP's exposure, given extent and duration of use of fen, is far greater than Interneuron's. The other aspect that is almost (but not really) amusing is that the US analysts are surprised at the lack of US patients emerging with major pathology. There is an intrinsically American tunnelvision here, because the same observation could have been made about the lack of large scale pathology emerging from the European population; 11 million Redux users, and an even greater number of Pondimin/fen users. There has been this enormous repository of longitudinal data that simply has not produced sturm und drang. As a British based firm, with a Danish CEO, I suspect SKB is keenly aware, and more responsive to, this benign European experience. That may be one of the reasons that they have not viewed AHP with the fear and loathing that US analysts have expected. The deal may not go through (there are a variety of complexities regarding comparative valuation, corporate cultures..with the Pharmacia /Upjohn merger as an illustration of what can go wrong) but this merger discussion can only be interpreted as a positive inference for Interneuron (though I have no doubt some will try to find a way to pretzel the logic into a negative). NeuroInvestment (www.neuroinv.com)