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Biotech / Medical : Cyberonics (cybx) epilepsy therapy recommonded -- Ignore unavailable to you. Want to Upgrade?

To: David S. who wrote (181)	3/17/1998 12:03:00 PM
From: yehuda fruchter	Read Replies (1) \| Respond to of 471

You pay for a business based on the risk/reward of the business. It makes absolutely no sense to pay even a penny for a business that is going nowhere. Cheap in price doesn't correspond to a good buy. STJ made a small investment in an emerging technology (vagus nerve stimulation). If the technology becomes more proven and more mainstream (and that is still an if as CYBX is still in the early stages of introducing the product) then possibly they would be interested in buying them, irregardless if the company is worth more on a market value basis. It would have made no sense to buy CYBX before, the technology was not even yet approved by the FDA. If CYBX pans out I don't think it would be irrational to pay over $1 billion for them, as the margins on Medical devices are big and vagus nerve stimulation could be applied to alot of neurological disorders (not to mention the over $1 billion refractory epilepsy market).