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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Dauntless who wrote (5964)	11/24/1998 6:18:00 PM
From: dino	Read Replies (1) \| Respond to of 7041

Late this afternoon, CNBC stated more warnings related to the heart will be put on Viagra's label. Score one for Vasomax!!

To: Dauntless who wrote (5964)	11/24/1998 8:05:00 PM
From: Tokyo VD	Read Replies (1) \| Respond to of 7041

Dauntless, Contrary to your portrayal, I used to believe in this company until I felt I was mislead. I hope I don't need to remind you of the false promises or lies that the company has perpetrated on the public. As for your request to prove my statement that "NO SALES IN MEXICO IN THREE MONTHS AND THE ONLY SALES PRIOR TO THAT PERIOD WERE TO ITS MARKETING PARTNER FOR CHANNEL FILL", I must first correct your fallacious statement. You twisted my statement to one that read: "ZERO sales of the product to patients in Mexico between June and Sept". First, the three months under discussion is not June-Sept (that is four months). Since Zonagen reports on a calendar year, the three months under discussion are July-Sept. Given that you now understand the period we are discussing and cannot twist the truth, I'm not concerned with commenting on end-user sales (patients) because Zonagen does not sell to end-users, nor does it report end-user sales. Zonagen sells its product, Z-Max, to Schering Plough at an agreed upon cost plus price and receives a royalty on the amount of these sales. Plain and simple. Zonagen has no direct sales force in Mexico (or correct me if Joe has hired a Mexican sales force because this would mark another time where he would have mislead people). Zonagen does hope that end-users sales (patients) will grow because only then will pharmacies place reorders with Schering Plough, which will, in turn, order more from Zonagen. Now, by all accounts, Schering Plough placed a large order in June quarter. This order allowed Schering to ship the product to its Mexican distribution center (channel fill). Schering's Mexican distribution center then informs pharmacies that the product is available. Pharmacies then order the product for stocking, so when patients come in with a prescription (or in the case of Mexico, sometimes without) the pharmacist can fill the order. In the specific case of Z-Max, Schering launched Z-Max two weeks prior to Viagra's official launch. Schering wanted Z-Max priced comparably to Viagra, but had to deal with the Viagra hype. So, Schering decided to run a promotion. To incent doctors and patients to order Z-Max instead of Viagra, Schering offered the following promotion: Buy one Z-Max pill, Get three free (thus making the cost per pill drop to one-fourth the price of Viagra). When Zonagen disclosed the amount of royalties from sales to Schering Plough in the June quarter, you and others devised your own scenarios based on assumptions as to what royalties this market would generate. Obviously, these assumptions are only valid if the assumed sales continue at the pace which you ascribe the model. In fact, by the look of the Oppenheimer EPS rollout, its analyst really jumped in head first. But, when Zonagen reported its September quarter, Zonagen said it had no royalties from sales in Mexico. Zonagen said this, not you or I. So, that means Zonagen SOLD NO PRODUCT IN THE THREE MONTHS ENDED SEPTEMBER 30TH. THAT IS FACT. Now, if you want to speculate that Zonagen shipped product in that period, then you must assume that Zonagen gave it to Schering because Zonagen was paid NO ROYALTIES on product sales during the three months. THAT IS FACT, NOT YOUR FICTION. As for the peer review publication, I'm not the one who claimed last year that the Phase III studies would appear in a peer reviewed journal. That claim was further promoted this year by the company and its lead investigator, who happens to be on every schlocky impotence company's payroll. As for my sense of humor, Vasomax had no effect (ironically, just like Vasomax has on men who suffer from erectile dysfunction). Now, if you really want to understand the placebo effect, then look no further than all those investors who bought the company's stock to cure the ills for their stock portfolios. For almost everyone (besides you, of course, who bought at $4), it has had a detrimental effect. I would call this an unreported adverse event. Tick tock (it is you who is running out of time with false promises) Tokyo