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

To: mannyj who wrote (270)	5/19/1998 6:20:00 PM
From: Alok Sinha	Read Replies (2) \| Respond to of 548

They have 70 MM in cash right now, which would have been more than sufficient to take them through with Liquivent by itself. They anticipate 20 - 30 MM for Phase III Oxygent trials. Gwen indicated that they may need to raise 15 - 20 MM, but there was no urgent need for cash. I don't necessarily see this as a negative, considering how the stock behaved last time Alliance raised capital. In my opinion, the stock is probably as depressed as it can get (except for the circumstance where all their products blow up). Investment banks, ususally hype a stock to clients when they do a offering which results in a run-up. From Alliance's management perspective the prospect of diluting their stake through an additional 2 -3 million shres is certainly not appealing. For small investors (like me), I would welcome the increased visibility from another offering, since I don't think there is much downside from here. Gwen also indicated that investment bank's have already started calling them, but they would like to hold off on the financing vehicle and its timing till all three products are solidly in Phase III. I expect a announcement from Alliance soon on their side of the Oxygent story, and details of their plan. My understanding was that the press release was drafted primarily by J&J lawyers, and most of Allinace's resources were directed at getting the best possible terms (royalties) from the marketing agreement that is still in place. Regards Alok