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

To: pappy who wrote (540)	4/24/1998 6:44:00 PM
From: Dukie	Read Replies (1) \| Respond to of 1754

Pappy: I just read a research report that makes the following observations about visx and beam. The most recent class action suit filed in California superior court (a court whose laws mimic the federal anti-trust laws) leaves each company liable for in excess of $90 million dollars. The consumer class action is a different law suit with different plantiffs but seeking similar damages. It is likely that Nidek, Autonomous, Chiron and Lasersight will get FDA approval this year. If Visx/Beam lose their FTC and or civil actions it is likely that all technology liceensing deals go away. In Canada, in a freely competive market, the PPP equivilant royalty is $25 per procedure, it is called a key card payment. At 25$ per procedure, VISX lost money in Q1 98 on a pro forma basis as opposed to earning 58 cents per share. In Japan VISX hopes to structure a per procedure royalty key card arrangement. This highly unlikely since NIDEK, a Japanese company, is their prime competitor and likely to get first FDA Japanese FDA approval. "No-touch" PRK is a registered trademark of Dr. Johnson of Vancouver. Dr. Johnson has an US issued patent on removing the transepithethial using the laser therefore VISX should not be using that term without his permission. Unfortutnately the VISX management glossed over the problem of the potential liability of giving back the $110 to Summit on each lasik procedure. If LASIK is not an FDA approved procedure some would make the case that the doctors have no obligation to pay the procedure fee just like no procedure fee was charged on PRK pre-FDA approval. The flipside is that when PPP goes away and if royalties go to $25 then LVCI and LCAV are very well positioned. Without PPP, LVCI is making money to day. Just my opinion. Happy Hunting