To: Ariella who wrote (336 ) 12/13/1998 12:36:00 PM From: Lucky Respond to
Anyone contacted Pharmos about the timing of when they expect to raise more money? They will not wait 3 months before money runs out to raise additional capital. I would have to believe that they will seek the infusion of capital within the next 2 months. I have to believe that though Pharmos would like to go the route of raising capital by more conventional means, that more than likely, they will be forced to go with the Castle Creek group for additional funds. CC group offered to give them an additional $3 million this summer but Pharmos declined. I know that CC group expected the stock to be at least $3 by year end so they can't be very happy with their investment thus far. They have converted roughly 2/3rds of their stock already at prices between $1.46 and $1.85 since September. Also, Bob Cooks contract was up on Dec. 12th, has it been renewed? Guess on Monday, we will know!!!! Pharmos had an offer for a partnership on hu211 BEFORE the ph2 results were released. Obviously, the offer was not acceptable to Pharmos. Also, it would be of great help to know what the financial arrangements were several years ago when Marion Merrill Dow was at the 11th hour of doing a partnership agreement with Pharmos for hu211. (That deal was nixed when Hoersht bought out MMD in October of 96). I understand that Lotemax now has 5% of its market and Alrex is at 3.5%. Am puzzeled at to why B&L has taken so long to file for European approvals. Should have been done in Sept. and here it is Dec. with no news in sight. You ask Pharmos and their response is "We don't know"!! How can you NOT know. That pisses me off when they don't offer a reasonable explantion to a question that they MUST know the answer to. Rudder Finn is following on the heals of the Trout Group in their duties to Pharmos. What I mean is that they are ligning up institutional firms to have private meetings with Pharmos but there is not a concerted PR campaign to get Pharmos in the financial magazines, CNBC, etc... maybe that is what Gwen Crosson is for but of course we are not seeing anything from that end either unless I am reading the wrong articles. Bottom line is the stock is acting like a new round of financing is fixing to occur so sit back, watch it fall to the $1.50 level and after the money has been raised, it will run back up to the $2 level. From there, it's price will be determined by the unfolding of the hu211 story. As an additional note, I believe Pharmos could go along way to helping its credibility with the street if they would find a very well known and respected person from the pharmaceutical industry to sit on its board of directors. Maybe their thinking is that once they sign a partner, that co. will want to place some of their own people on the board but in my opinion, why wait for that event to occur. O.K. I'm through for now !!!
