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

To: Izzy who wrote (4970)	7/23/1998 2:45:00 PM
From: Zirdu	Respond to of 6136

I have read on these threads that the shorts are pointing to high inventory as a cause for concern for AGPH. I don't get it. It is not like they sell clothing, for example, which they might have to discount to get out the door. Their inventories are of Viracept, presumably, which they have a steady market for. So I don't see that high inventories for AGPH are anything to worry about. Regarding the proposed tracking stock, I am opposed to the idea. Especially if it is done like the example cited to us (Genzyme, I think), where the spin off to shareholders was a taxable dividend to them. (As I understood the press release cited on this thread) I am not at all interested in any smoke and mirrors deal that just ends up costing me taxes just to hold both pieces of paper, which I now own as one piece. Maybe they can make it a tax free deal, in which case I would regard it as more an annoyance than anything.

To: Izzy who wrote (4970)	7/23/1998 8:33:00 PM
From: billkirn	Read Replies (1) \| Respond to of 6136

Izzy: ( Your theory ) Could be a very good one. Peter Johnson has always wanted to stay small to encourage innovation and minimize corporate issues. The HIV focus and direction is pretty well complete. New drugs in this field are being purchased from outside the company. A major portion of the company is becoming sales, marketing, mfg., drug approval oriented. I think Peter prefers discovery, R&D, and innovation. Split the organization so that the HIV business can be sold to Dupont, and Peter can manage and run Agouron2. The greatest short term value increase comes from new discoveries and he is good at managing this stuff. He may be having trouble or just doesn't like managing sales, marketing, and mfg. Anyway, I like your theory and like the prospect if this comes true over the next 6 to 12 months. Agouron1 may go for $2 billion, especially if Remune proves effective. This would give shareholders around $70 per share value, kill the shorts, and provide another run at blockbuster drugs with Agouron2. Aren't dreams wonderful. Bill