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 : CYTO -- Ignore unavailable to you. Want to Upgrade?

To: Karen E Hoof who wrote (7412)	11/26/1998 2:07:00 PM
From: Dan Sorenson	Read Replies (1) \| Respond to of 8116

Hi Karen, The s-1 is good time consuming reading. I intend to get thru it all today and will post little tidbits and interpreted by me to leave an easy to read trail for others here. Here are a few: Bard has the responsibility to market ProstaScint to Managed Care Organizations. This is a big audience. They have done nothing significant to approach this group. Management must be pretty pissed to add this wording to an SEC filing. Essentially they are holding ProstaScint back. I personally think ProstaScint should be easily selling $3 mil a qtr and growing 15% or each and every qtr. Bard is holding us back. I disagree with alot of other folks as I believe that ProstaScint now IS our future. Look at it this way, on Quad, if Berlex/DPC get 75% of sales. You have to assume the Dow minimum gives way to a percentage of sales at some sales level which I assume is that anything over $3 mil in a year we will probably have to pay Dow about 15% of sales.(This is a 100% assumption on my part, no basis in fact). Well that would mean 75 and 15 to others, leaving 10% to Cyto. Well if Quad does $1 mil per month that would only leave Cyto a bottom line contribution of $1.2 mil for the whole of 1998. Not much. ProstaScint on the other hand probably adds about 70% or greater gross margin to Cyto on each and every sale. I signed on the PIE website the other night and there were still only 214 PIE sites listed, but, in the S-1 they state that as of 11/20/98 there were over 220 sites. Good deal.. **The new financing with Knightsbridge, for each $1 of face value that we sell to them, We have to pay about 10% in assorted fees, this hurts our bottom line dollar for dollar and we discount the face value 15% to them. This does not effect our bottom line. In summary for each buck of face value Cyto gets about $.75 in cash. We can only draw down about $500,000 of face value each twenty days. This DOES NOT solve the Nasdaq lack of equity possible delisting problem. It does help, but, we cannot achieve compliance and continued listing with this alone. We cannot draw down the money fast enough to do so and we are running out of time. Remember, after this possible one-time profit/break-even in the 4th qtr. we revert back to losing big bucks which will exacerbate our Nasdaq problem. Til later, Dan