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Biotech / Medical : Incyte (INCY) -- Ignore unavailable to you. Want to Upgrade?

To: Bluegreen who wrote (677)	7/17/1998 10:39:00 PM
From: aknahow	Respond to of 3202

Bluegreen, just posted something else to you. Unfortunately we do not know the actual percentage royalty nor do we know if it is payable on any BPI product or just on those where it is clear an INCY patent is involved. If the market for BPI is about $2 billion then even with a 2% royalty income could be $40 million. But how long it would take to get to $2 billion is longer than I want to contemplate. Why would you want a free lottery ticket? These warrants and any warrants are not just funny money. They are kickers that help the deals get made. When you get all done negotiating you ask for something else and the other side gives you something additional which both recognize has little present value but might have value in the future. We or I don't know how long the warrants stay active. It may be ten years, it may be more or perhaps less. I do think Castello was right about this being a win win deal. BPI to me is a very interesting protein and IMO eventually the regular non medical media is apt to get caught up in some of the exciting research being done, or even some clinical trial results. And as I posted before, this patent agreement has to make it easier for XOMA to deal with others.

To: Bluegreen who wrote (677)	7/29/1998 3:09:00 PM
From: rkrw	Read Replies (3) \| Respond to of 3202

Bluegreen, I've noticed a few of your posts trumping up XOMA. If you asked Bill Parcells that same stupid question I think you would get a long glare and an answer with some profanity laced in. XOMA is a stock where if you had invested an equal amount each year for the past 10 years you would be lagging behind the rest of the market by roughly 95%, or many many fold. Hopefully for XOMA and its shareholders sake, there will come a time when Incyte will have the financial incentive to exercise those warrants.

To: Bluegreen who wrote (677)	7/30/1998 1:12:00 AM
From: rkrw	Read Replies (1) \| Respond to of 3202

Bluegreen, Your questions were leading questions. What you were looking for was, yes, it would add very significantly to INCY and of course they want the warrants to profit from the spectacular run that no doubt XOMA will undergo. If XOMA fails here, INCY stock would probably not even react. For a likely sub 5% royalty and a small handful of warrants (why worry about dilution at this point?) INCY has nothing to lose. Thats why they made the deal, not because of some extreme enthusiasm they had for this project. Now how about this? What if you bought shares in both INCY and XOMA at the annual high each year since the companies have been public, what would your returns look like? Here's a guess, down 97% in XOMA and up 500% in INCY. While certainly past history is not a reason not to own XOMA, it certainly provides a reason to tread carefully and steeped in reality.