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.

Microcap & Penny Stocks : Pharmos(PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (1404)	10/13/1998 10:24:00 PM
From: Ariella	Read Replies (1) \| Respond to of 1491

Q3 results not likely to be released till early November according to my conversations with management. We were told in August on conference call that Q3 sales for Lotemax and Alrex were likely to be sequentially lower because in June quarter pipeline was filled and revenue artificially spiked. Management is on record saying it's got enough cash to last through Q1 1999 and maybe a little into second quarter. The CFO is a real penny-pincher (I mean that as a compliment). Last month I heard from contact in Israel that two analysts were already doing due diligence on the company, one was quite far along in process, and that we might get more visible coverage after Phase II results were known. What we've got going now is the slightly delayed momentum we saw after the FDA approvals last winter. Management is actually doing a fine job at promoting the firm (the past few days' griping on the thread notwithstanding) and is using many opportunities to push the company name. Here's a rough calendar of events which I developed that could affect PARS stock price over the coming months: 1998 Q3 - Alrex & Lotemax will probably report lower revenue than in Q2 when products were launched and the pipeline initially filled. Q4 - management expressed strong hope based on new prescription and repeat prescription figures that Alrex & Lotemax revenues would climb October -Pharmos delivered HU-211 paper at neurosurgical conference in Seattle (10/7). -Pharmos spoke at New Jersey conference for fund managers (10/8). -Dr. Aviv spoke today at a Prime Minister's day in Israel (10/13 - globes.co.il. November -looking for Ruder Finn IR firm to help get PARS management in front of some institutional groups -Pharmos will be represented at a high-tech investors' conference in Tel Aviv sponsored by Robertson Stephens Evergreen, Ltd. (11/16 -17) -Second paper on HU-211 will be delivered at a medical conference in New Orleans December - BOL expected to make application to sell Lotemax and Alrex in Europe for first or first two countries. (Anyone who wants to goose the bureaucratic BOL along in this process ought to call their Pharmaceutical Customer Service people:1-800-323-0000. Say you're a BOL shareholder and want to know when the Pharmos-related drugs will be out in Europe). Countries targeted initially for the likelihood that both drugs will get "special status," enabling a superior level of reimbursement. The rollout of the drugs will be on an ongoing basis over the next 2 years. European cut is 24% for PARS (versus 29% in the US). After the first two years its agreement with BOL alters and it has the right to "co-market." I understand this to mean its portion of sales theoretically can move up to 50%. 1999 First quarter -hoped for sign on of HU-211 strategic partner -move to Phase I clinical trials in tamoxifen study Mid-year -new drug application for LE-T -Phase III for HU-211 initiated Second half -probable $2.6 million payment to PARS by BOL if LE-T has received regulatory approval in the US and the company has gotten regulatory approval in certain markets outside the US for Lotemax and Alrex

To: Ed Ajootian who wrote (1404)	10/14/1998 9:11:00 PM
From: arnie h	Respond to of 1491

Ed: Don't really have a clue as to who was selling big time. From the charts I follow, it started on Aug 3 and lasted almost 2 months. The Aug 3 date was a key date in the CC deal. I believe some of the selling came from them but not all. From the shape of the data, my guess, and it is strictly that, is that Ariella had the right idea; this involved an Israeli fund getting hurt by the collapse of the Russian ruble. Perhaps, a number of hedge funds have had to unwind over the period coincident with CC selling. At any rate, it appears the relentless selling is over, at least for the time being. Additionally, accumulation seems to be occuring. We do need to remember that anytime CC holders convert,they do so at the average of the lowest price for the preceeding 5 days. Lord knows what effects will be created in this process. In the final analysis for investors (vs. short term traders), coin-of -the-realm here involves sales by BOL, an HU211 partnership with a sufficiently prestigious pharmaceutical firm, and Pharmos's ability to manage its cash needs without resorting to further heavy dilution at low prices. Regards, Arnie