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Gold/Mining/Energy : Inflazyme Pharmaceuticals (T.IZP) -- Ignore unavailable to you. Want to Upgrade?

To: Hippieslayer who wrote (848)	2/25/1998 2:53:00 PM
From: Harold Lehman	Read Replies (1) \| Respond to of 1501

This is a small cap stock stock on the VSE, so I don't think that anyone can pretend that they're buying a Coke, Intel, Microsoft or Lucent Technologies. And it is a biotech, which means long lead times and uncertainty as to approvals (gotta wait till the fat lady sings). In other words, anyone who buys it knows that it is inherently very high risk. That doesn't mean that seeing violent downdrafts is any less excruciating. The small cap market has been brutal for awhile, esp. in biotechs. Even companies that have sailed through development with products that will surely get approved and make money have acted badly this year (e.g.- Dusa, Ligand, Cortecs, Viragene, ZymeTx, Texas Biotech). So a company even further behind in this process cannot do well under these market conditions. The question is whether these market conditions will be changing in the near future. I may be way off base, but I think that small caps should be outperforming in the near future, as I have been reading some large money managers' comments that showed some budding enthusiasm toward this market sector. I figure these people had no money in these type of stocks and maybe they're getting ready to deploy some assets into them. Regarding Inflazyme I feel pretty good about their prospects because even if nothing else works as hoped for, I think that they will probably make a lot of money from the tb diagnostic tests. It's the type of test that, due to its ease of use and specificity of reaction, can create demand much greater than previous projections, which had to be based on the skin test utilization. Also, if some money starts rolling in from this within the year, which I think is a real possibility, then suddenly Inflazyme has more negociating leverage. If the royalty flow is great enough, they might even be able to take some products through phase 2 all by themselves without any secondary offerings (this is strictly my own opinion). They will have a stream of products over time, and as they go through the required processes they are picking up experience on a learning curve that everybody probably has to go through. This will make product transitions smoother in the future. That's my opinion. If I'm wrong I'll join Stockpickers Anonymous. HL