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

To: Robert L. Ray who wrote (61)	7/29/1998 12:57:00 PM
From: rkrw	Read Replies (2) \| Respond to of 127

Robert, While in theory a greater than 50/50 deal AND licensing separately as standalone and in combo sounds great, it is completely unrealistic to expect. It simply won't happen. No big pharmaceutical company is going to give GELX a deal along those lines. While GELX has a promising compound, big pharma has equally as much to offer in terms of money, sales force and infrastructure. Further, the statin market itself is many fold greater (30X?) than the bile acid seq market, so there is literally no way a deal will be struck to your liking, at least involving a pharma giant. The drug is just not big enough. If they partner with a big pharma, I would expect more along the lines of 15-20% royalties. Hopefully they will forego milestones and upfront in exchange for higher royalties. To be honest, big pharma needs big drugs. Statins are very clearly first line products, with Cholestagel hopefully entrenching itself as a combo like product, which clearly the clinical trials show they are heading. I would be extremely pleased with 15-20% royalties, if they partnered with a capable big pharma.