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

To: Zvi Yammer who wrote (1260)	7/8/1998 11:32:00 AM
From: Dr. John M. de Castro	Respond to of 2742

I don't disagree with any of your or Rudy's points. My problem with the deal is that it represents a no risk 3-yr test drive for Pasteur Merieux. CIST got little for granting this right. I was greatly disappointed in these terms. If the unpublished results were so good, surely CIST could have struck a much stronger deal. As you've well documented, the potential here is immense. Why give all the degrees of freedom to Pastuer Merieux and get so little in return? The only thing that would make sense would be if CIST retained a huge royalty rate (eg 20% or better). Unfortunately, it will be years before we'll know what the rate really is. So in the meantime I'm forced to trust in the accumen of a management that has up to this point shown very little. I remain encouraged but skeptical. John de C

To: Zvi Yammer who wrote (1260)	7/8/1998 1:04:00 PM
From: Rudy Saucillo	Read Replies (1) \| Respond to of 2742

John De Castro I think described the deal very well. It's definitely a low risk agreement for PM. They've basically agreed to fund the remaining preclinical work with their equity investment + $900k and will decide within 3 years whether to license the technology. It's a reasonable start, IMO. Hopefully we'll continue to see progress in the business plan over the coming months. They can never be accused of hyping their stock. This is one of life's undeniable truths! Rudy