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Biotech / Medical : Depotech(depo) -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (850)	10/20/1998 2:02:00 AM
From: Dave K	Respond to of 887

rkrw, fair comments. Actually SkyePharma does have sex appeal after a little digging. Nice clients with Watson, SKB, Sepracor etc. Just listed in July and raised $36 mil. so do they have cash. There are still losing money though...think I saw -.81c this year to -.31c projected next. Maybe worth watching ?. I and others will have payed $35 per SKYEY share assuming the contingency payment kicks in at some point. The burn is why this deal could not have waited for FDA word on Cyt and even Phase II results of Morph. Favorable results there would have returned the price to at least $5-$6 IMO. Possible partnerships etc. Is this what they were afraid of ? Geze look at this...what a deal for them / 75c per share for the Depo suckers. b) an additional $0.75 per share, payable if either of the following events occur before March 31, 2000: i) a development agreement is signed with a corporate partner for DepoMorphine, or ii) a development agreement is signed with a corporate partner for a macromolecule using DepoTech's DepoFoam technology Wonder where Chiron fits in all this ? Dave

To: rkrw who wrote (850)	10/20/1998 8:30:00 AM
From: Dr. John M. de Castro	Read Replies (1) \| Respond to of 887

A bad deal by any other name is still a bad deal! I believe that you meant to say 2 quarters of cash and not two months. In addition, they have substantially reduced the burn. So the cash may be good for three quarters. This is plenty of time to complete the depoMorph phase II and sign up a partner. I have no problem with SKYEY and agree that it is an interesting company. I have no problem with an acquisition. I also agree that DEPO management are incompetent. If there was ever any doubt then this deal certifies their incompetence. What I do have a major problem with is the absurd terms of the acquisition. It may demonstrate that SKYEY management is shrewd. It sure demonstrates that DEPO management is not. Management incompetence or not, DEPO still has a potentially very lucrative platform technology. Shareholders have put in their "risk capital" because of this platform. Many DEPO shareholders have sustained losses. However, the value of the platform has not yet been determined and before the shareholders can learn if their "risk" will reap a reward, DEPO management gives all future rewards away to someone else for a pittance. SKYEY is being given all the future potential profits, while the stockholders in DEPO are being getting the shaft. John de C