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Biotech / Medical : Aronex Pharma (ARNX) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Lee who wrote (189)	11/23/1998 9:53:00 AM
From: Sam Lee	Read Replies (1) \| Respond to of 320

Well, you can obviously reduce my projections by 1/3 thanks to the upcoming heavily dilutive secondary offering. I understand Dr. Cox' rational to be that there will be over 100 biotechs going into the market in 1999 for money, and he wanted to beat the crowd. I think the price is 3 1/16 for the 4.5 mil shs. Dr. Cox says this additional injection of money will assure Aronex that it will remain comfortably solvent past 2000, during which time Nyotran will become revenue generating. Dr. Cox is also very proud of the secret royalty rate to be paid to Aronex. He implies that it is significantly above the industry average and will help offset the effect of the pending dilution. The good news still remains that we do have a deal with ABT, and many biotechs would like to be in our position. However, we do have to produce a marketable drug that sells, b/c our deal is clearly end loaded. It is a shame that folks who have been in this stock for years are now worse off than folks who waited to buy AFTER the deal was announced. You would think that it should have been the other way around. Oh well, I am sitting on a cost of $3.69, and so I will hold for a while. Maybe the atragen nda due to be filed in December will help. The next date after that is May when the nyotran nda is to be filed if all goes well.