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Biotech / Medical : NexStar Pharm(NXTR) -- Ignore unavailable to you. Want to Upgrade?

To: John Veltheer who wrote (303)	10/22/1998 7:27:00 PM
From: Steven Yang	Respond to of 328

NXTR investors: NXTR reported its 98Q3 earning this morning. I am glad to note that the product sale has continued to grow in 98Q3 while the expenses are basically ketp flat. On the operation basis, NXTR lost about $1.1M, or (-0.04) per share. With such a small loss, NXTR would become profittable even with a small uptick in the sale. According to the CC, NXTR is expected to grow its direct sale by 10-15% for the next year due to the lable expansion and the product sale in new territories, France in particular. It expects a higher growth rate in the US. A total revenue growth rate of 15% or higher is expected for 1999 when both the US market and the international market are combined. The company management also mentioned that the preliminary results from the Phase II trial of MK is good. This is a very positive news for NXTR, since MK market is a lot larger than that of AB, If the management's word can be believed, NXTR is very likely to be profittable for the next quarter, even without the proposed spin off. Steven

To: John Veltheer who wrote (303)	10/22/1998 7:44:00 PM
From: Steven Yang	Read Replies (1) \| Respond to of 328

NXTR Investors: (continued) With the earning report, (and the extra income from the deal with SKW) I expected that NXTR would be received very warmly today. However, this did not happen. Now comes the troubling/confusing part, to me at least. I could not find what is the bears' case on NXTR. There are bears out there for NXTR, given the 2.6M short interest. As a matter fact, about 50K new short position was initiated last month even when NXTR was traded at $8 or less. What did the shorts see that I/we/the longs do not? The only reason that I could think of was the speculations by the bears that NXTR will lose its sale in the face of competition. If that is the case, the 98Q3 earning report has settled the issue. NXTR's product sale has continued to grow, and the growth is expected to continue, albert at a slower pace. What could be the other reasons? Any comments are appreciated. Steven ps: I have given NXTR a value of $18 based on its product sale, cash ($60M), PASS technology, and pipeline (mainly MK).