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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (3238)	3/31/1998 5:13:00 PM
From: Dauntless	Read Replies (2) \| Respond to of 7041

Princess, if that's true - you should be his wife (G) Any woman that spends money faster than Zonagen would have to be a queen!! You could save this guy some money!!!

To: Linda Kaplan who wrote (3238)	3/31/1998 5:17:00 PM
From: Kailash	Respond to of 7041

Will they stay afloat? The licence fee makes an impressive difference in Zonagen's results - product sales minus cost of sales doesn't leave much elbow room. Research has been ramped up to impressive levels - in fact, it looks like the ten million was pretty much spent during the last quarter. The net income is a million in interest, 340,000 in net sales, and the leftover. What are the landmarks Zonagen must pass to continue to get money from Schering? If research continued at the $7.5 million clip, does this mean we can expect Q1 to have produced a loss? Let's be a bit optimistic and assume they made $400,000 on sales (that seems to have been pretty steady over the last year), but that the interest income is pretty much gone (they've also spent $5 million repurchasing shares). I'm sure I'm missing something - what would prevent first quarter losses of five to ten million, or -.40 to -.80 a share? The thing is, the research effort is obviously important to meet the landmarks and survive at all. Kailash