Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?

To: invest04 who wrote (4497)	9/2/1998 12:05:00 PM
From: HedyVP	Read Replies (1) \| Respond to of 5736

You have a good point there.

To: invest04 who wrote (4497)	9/2/1998 12:54:00 PM
From: Robin	Respond to of 5736

Stephen, I tend to agree if the deal were being negotiated with a larger medical manufacturing concern (HP, BD, etal). Should the lawsuit cause the demise of CCSI, the partner would acquire the technology and continue manufacture and support of the product. Of course, the deal would have been concluded a long time ago if a major partner were in the offing. On the other hand, what if negotiations were being conducted with a number of smaller (local or regional) hospital supply stores? Financial viability of CCSI would then be a concern. The primary responsibility of these distributors is to provide supplies and after-the-sale service to their customers (your doctor and mine), not to take over manufacture and support of the Colormate. If the lawsuit would cause CCSI to become insolvent and no other company moved in to pick up the product line (ColorMate), then the distributor would be left with a number of customers who still require a constant supply of disposables, occasional repair and/or calibration of the instrument, etc., now no longer available. The end customer is then left with a sizable investment in an instrument for which there is no support and which is no longer of use (lack of disposables). The distributor might also be stuck with a number of instruments, which would then become 'dead' inventory. The end result is that the business relationship between the doctor/hospital would, at a minimum, be tarnished if not destroyed. Of course, this would be a worst case scenario, but it is something which a distributor would have to fully explore before entering into an agreement with CCSI. In this case, the lawsuits pose a great obstacle, IMO, to completing the deal. Rockin' Robin