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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: David Israel-Rosen who wrote (36)	11/3/1998 12:22:00 PM
From: Steve Harmon	Read Replies (2) \| Respond to of 1386

You are correct about BTGC. It occurred in 1995. Stock traded in the $1.5 range. Ridiculous valuation. Investor group(I believe it was the Elliot group) bought 5-15% and got on BTGC's bod and made things happen...Stock quickly moved above the $5 plus level.

To: David Israel-Rosen who wrote (36)	11/3/1998 12:52:00 PM
From: Ariella	Read Replies (2) \| Respond to of 1386

David - 1) you know as well as I that in order to get attention-grabbing analyst coverage we must be ready to sign a fat check to someone like Oppenheimer or Merrill Lynch for investment banking business. We're not financially at a point where this is a good route to take, but the company does what is fiscally prudent to do vis-a-vis promotion, i.e., we are spending money on a PR firm with good contacts into the institutional side of Wall Street (who's been on board, what, 8 to 10 weeks during which time we had a huge bear correction?), and just this morning spent money to be on the roster of companies included in The Wall Street Forum. 2) You write: << If a Control group is to be formed - for example, Castle & Partner, Yosi, Ariella, and myself it will have (by default) an effective control of Pharmos. >> I wonder: is that an invitation? Yes, four of us on the thread apparently control 5% of the stock. But please don't count my shares into such a deal. I'd rather wait for the spring to see what the company is going to pull off with regards to a partner for HU-211. This is not a widget-making factory. An unfriendly takeover here means the loss of the 45 managment/researchers. In other words, you buy a house and no one's home. 3) Besides, with respect to your comparisons of PARS and BTGC, didn't you read my post on the anti-takeover provisions in Nevada? PARS is a Nevada corporation; BTGC is a Delaware corporation. Big difference. PARS' Board of Directors already has the authority without action by the stockholders "to fix the rights and preferences of and issue shares of Preferred Stock, which may have the effect of delaying or preventing a change in control of the Company." 4) You write: << If they issue 5 Million shares $1.75 of 2.5 Million shares to the New Partner @ $3.50 is Important !!!>> I agree except for one thing. You're assuming the partner is going to be able to steal our shares away at bargain basement prices. In fact, the initial agreement between PARS and BOL for the manufacture and marketing of Alrex & Lotemax was signed on June 30, 1995. However, BOL's $2 million investment in PARS stock did not happen until 18 months later in Dec. 1996. 5) You write: <<I do not know about you. But my investment in PARS is not doing that well at this time. While I am confident in the Future of the Company and intend to remain LONG as a long Term Investment I am not happy with the Performance of MGT and its PR efforts.>> Yes, I obviously wish the price of my shares was higher, but I think the main task of management now is to do the business at hand, i.e., to get a partner for HU-211, to make sure BOL aggressively picks up targeted market share on Alrex & Lotemax, to finish negotiations with the FDA about the PIII for LE-T, to push BOL to complete the drug applications for Alrex & Lotemax in Europe, to begin ramp-up for PI in tamoxifen, to continue research about HU-211 in stroke, and to pay close attention to cash flow. It appears to me that management is doing these things. Regards, Ariella