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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Izzy who wrote (4959)	7/22/1998 9:06:00 PM
From: Peter Singleton	Respond to of 6136

Izzy, I think the argument is that the market is assigning 0 value, or negative value to the cancer products, so separating them would in theory raise the price of AGPH General, because it would now be free of the $45M perceive cash drain of the cancer products. And there would be a value assigned to the cancer products, because the cancer portfolio would then be assessed and valued in its own right ... basic research, pre-clinical stuff, and GARFT and MMPI products in the clinic. As a loose example, suppose AGPH General were valued at $5, but the $45M per year R&D cost from the cancer portfolio were valued at ($1), for a combined value of $4. But if the assets were separated, and evaluated on their own, AGPH General would receive a valuation of $5, and the cancer business, on its own merits, say, $1, for a combined value of $6. That's the idea. I don't have any experience in how these things work, but these vehicles have been done before, and have seemed to make sense. Peter