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

To: Bluegreen who wrote (7859)	11/27/1998 7:05:00 PM
From: aknahow	Read Replies (1) \| Respond to of 17367

Bluegreen, I don't think we are talking about revenue generated in the U.S. from product sales. "If we succeed with NEUPREX®, we anticipate a significant portion of our future revenue will originate outside the United States," IF WE SUCCEED.. WE ANTICIPATE...A...PORTION OF...REVENUE WILL ORIGINATE OUTSIDE THE U.S. I think U.S. revenue, not necessarily royalty income from others located in the U.S. will end up paying some sort of U.S. tax. But I await the prospectus for clarification. BTW posting and reading post should have disabused you of thinking there are any reasonable people, so your second question is just plain stupid.<g> Seriously, when one says, IF SUCCESSFUL we expect to sell what we were successful at developing does not sound like much hype to me. To add that some of those sales would be made outside of the U.S. sounds logical and not like hype. The final word came from the market. The statements were not taken as hype. The stock did not rise to $20 in anticipation of success and huge foreign market for Neuprex and other drugs.

To: Bluegreen who wrote (7859)	11/28/1998 6:51:00 PM
From: wolfdog2	Read Replies (1) \| Respond to of 17367

Bluegreen, this may have been answered by someone one else, but the taxes they will avoid are from revenues generated outside the U.S. On revenues earned here, Uncle Sam will still get his cut. Also what could the FDA care about whether XOMA pays more or less taxes? Taxation is totally outside their realm of operations. By your reasoning foreign companies would have a tougher time getting FDA approval than domestic ones. And that as you must realize just ain't the case. One problem that I have with the move is that for some perverse reason companies domiciled offshore tend to get lower p/e's than onshore companies. So some of what we save on tax may be lost in market capitalization.