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.

Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Thomas J Pittman who wrote (7822)	11/25/1998 12:40:00 AM
From: Bluegreen	Read Replies (2) \| Respond to of 17367

Let's turn that question around and ask why would one own Xoma stock if they didn't anticipate possible approval of Neuprex? Hopefully everyone sees the risks in owning Biotechs like Xoma. Make no mistake about it, Xoma has proposed a move of domicile to Bermuda with the center piece justification being anticipation of possible approval of Neuprex. I have no idea of whether or not Neuprex will be approved but I can tell you if I was running Xoma I certainly would not propose a change in domicile at this stage of the game without the anticipation of possible approval argument. I for one will hit the exit door if Neuprex is not approved for Meningo. I will not stick around to hear about Hemo. trauma trial. I for one could care less if Xoma changes domicile to Bermuda unless they get approval for Meningo. indication. In my opinion all the other reasons given for change in domicile are secondary to Neuprex being approved and furthermore being a huge cash cow. Once again if you don't anticipate the same things as Xoma management, why in the world own the stock?

To: Thomas J Pittman who wrote (7822)	11/25/1998 1:54:00 AM
From: aknahow	Read Replies (1) \| Respond to of 17367

Agree the market is indifferent. This is IMO a non event. It only becomes important if Neuprex is approved and does result in significant sales outside of the U.S. If Neuprex fails the P III trial the stock will drop and lawyers will be all over trying encourage a shareholders suit. Even in that case I would prefer Bermuda because the suits produce nothing for shareholders but lots for the lawyers and, guess what, non approval is part of the risk involved in buying biotech stocks. Non approval does not, automatically, mean management, screwed the shareholders. Thousands of companies including Shell and Esso make use of Bermuda. Check out the link, provided earlier. Do any shareholders care that XOMA a company with its' offices and manufacturing plants in California is registered as a Delaware corporation?