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

To: md1derful who wrote (646)	1/29/1998 10:26:00 PM
From: Daniel	Read Replies (1) \| Respond to of 947

> Let's face it, our portfolios need a little liposuction!!! No, doctor, a LOT of liposuction. :-) Daniel

To: md1derful who wrote (646)	1/29/1998 11:41:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 947

Subject: Re: More Patent talk Date: Thu, Jan 29, 1998 14:34 EST From: Wesley0428 Message-id: <19980129193401.OAA26614@ladder03.news.aol.com> The major differences as I understand them, in addition to those noted in the prior post, are: Mentor's patent claims: "the probe tip is vibrated at 40,000 cycles per second at an amplitude of 2 mil. This high frequency, low amplituse vibration serves to efficiently and safely separate the fatty tissue and create localizied heat through frictional contact. This localized frictional heat serves to assist in the removal by physically melting a thin layer of surrounding fatty tissue." Misonix patent states: "the standing ultrasonic wave (which is later stated to have a frequency of 20 kHz - 24kHz) in the insertion tube produces cavitation bubbles causing liquification of adipose tissues ... the distal end of the tube and the adipose tissues at the surgical site are maintained at approximately body temperature" I've heard several possible defenses, from various armchair lawyers or analysts. 1. The Mentor patent is invalid because it makes claims that were in practice before it was filed 2. The Mentor patent is invalid because frictional heat is not part of the fat liquification process as they claim (cavitation and friction are not the same thing) 3. The Misonix device does not infringe because it operates at 20 - 24 kHz and the Mentor patent specifically states a device operating at approximately 40 kHz. Damned if I know the merit of any of these, but know you know as much as I do. But remember, this stock got to over $15 well after the Mentor suit was filed.

To: md1derful who wrote (646)	1/29/1998 11:43:00 PM
From: Candle stick	Respond to of 947

Subject: Worst Case Scenario Date: Thu, Jan 29, 1998 15:18 EST From: Wesley0428 Message-id: <19980129201800.PAA20392@ladder02.news.aol.com> Suppose Misonix lost the Lysonix revenue completely and USS decided to make the Autosonix product themselves. That's the absolute worst case, because MDA/Lysonix own the financial liability in the Mentor suit. Oh yeah, and no new products. What would MSON be worth? Well, they've got $1.50/ share in cash for starters (and they're cash flow positive) The "core" businesses have been steady and are currently doing better than ever, growing at 20%+ for the year, record backlog and good prospects in the pipeline for next year. These will generate about $14.5M in revenue this year with gross margins over 50%. Let's value that conservatively at 1X revenues. That's another $2.10/ share Even if Misonix doesn't make the USS product they earn royalties on all USS sales. Those royalties are pure profit and that business is a solidly growing business. USS has already ordered $5.3M worth of product. That has to convert into at least $10.6M in royalty-payable sales for USS. I figure that converts into $.08/share to Misonix. Put a P/E of 30 on that and that income stream alone values MSON at $2.40 / share. If you think the 30 P/E is too aggressive, remember the $10.6M is only going up. So $1.50 + $2.12 + $2.40 = $6 So I'd say there is VERY little downside from here. In fact anyone with even a little imagination can see lots of upside. They probably keep the Lysonix business, it keeps growing, it is a high margin business. They probably keep some of the USS mfg business. If they keep the probe mfg back up the truck. There are 3 new products in various stages of development, maybe they'll actually generate revenues next year. Thank you Wesley for all the great analysis....I hope you dont my reposting here....the more exposure your astute analysis gets the better for MSON, IMHO..........;^)