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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (236)	7/27/1998 3:49:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 4974

George: Perhaps it's true that "most" biotechs do private placements. However, very few companies that I have owned have done them. As a matter of fact, I can only think of two companies that I've owned in the past two years that have done a PP. One had already crashed, and the other did the PP just before crashing. So..... I have probably owned 50 biotechs. I'd bet that less than five have done private placements, and I can only think of one that did such when the business plan was still healthy. I can only think of two companies that did a PP while I still owned them. Certainly, among the universe of companies that I find to be attractive, PPs are the exception not the rule. Cheers! Rick

To: aknahow who wrote (236)	7/27/1998 3:55:00 PM
From: aknahow	Respond to of 4974

Mike, thanks for pointing out my error. Meant to say is too costly to do a direct public offering. BTW in the case of NTII the offering that I see on EDGAR was small $500,000 and to specific existing shareholders. While I don't know the details probably no one got screwed. There are all sorts of reasons why this would have been an arms length transaction. My point was more general and I believe it is correct, private offerings don't protect the company or its' shareholders simply by being private.