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Biotech / Medical : Cistron Biotechnology(CIST)$.30 -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (1258)	7/8/1998 10:04:00 AM
From: Rudy Saucillo	Read Replies (1) \| Respond to of 2742

CIST is getting next to nothing up front Agreed. But $31mm in potential milestone payments is substantial. My sense is that CIST negotiated to maximize future payments in lieu of upfront cash given their healthy cash position. There a lot of pent up profit taking potential. I understand why investors would want to sell, but selling below book value after a major pharma places high value on CIST's adjuvant technology isn't exactly the smartest trading I've seen. I've averaged down (following Zvi's example! :-) and I'm not selling at these levels. The deal is only a letter of intent and not a done deal Granted the deal is not finalized, but I think the chances of it falling apart are extremely remote. I basically consider the framework described in the press release a done deal. The specifics, which should be provided in the upcoming 10-K, will be interesting. The former chairmans shares needing to be sold Regarding Grausz, he's not in control of his CIST holdings and it's difficult if not impossible to say when they will be sold. Clearly his creditors are interested in getting high value for his shares. Rudy