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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Omer Shvili who wrote (371)	12/28/1998 9:38:00 PM
From: Ron	Respond to of 1386

Nice post, Omer.

To: Omer Shvili who wrote (371)	12/28/1998 10:05:00 PM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 1386

Omer- You suggested that a deal could take the following form: <I understand that PARS wouldn't want a very big equity investment (they don't want to dilute us), and I guess our deal will shift some of the cash from that part to either the up-front or R&D payments. So, I guess PARS' deal will look something like this: $10 - $12 million up front payments $7 R&D payments $15 - $20 milestone $5 equity stake Partner pays for P III PARS gets ~12% - 15% royalties (varry from region to region). > I just want to make sure I understand-this is my interpretation: Up front payments-- No Pharmos expenses, hence drops to the bottom line R&D payments - Allow additional research on HU211, payments offset additional expense (beyond the current level of approx. $500,000/mo) Milestone Payments- essentially no expense associated with them, hence drop to the bottom line If my interpretation is correct, this could mean almost a buck to the bottom line by the end of phase III. Add to that the current approved Alrex and Lot. will pay operating expenses (and more), this provides a tremendous opportunity for yearend 1999- if things go right, $10 does not seem out of line. Subsequent to a successful Phase III, we potentially have 10-15% of a very large number- 500MM- 1B. Potentially getting the stock price in the $20 range. Ah--- dreaming--------something to look forward to in 1999, so we can look beyond the current price. Tony

To: Omer Shvili who wrote (371)	12/28/1998 10:15:00 PM
From: wolfdog2	Read Replies (1) \| Respond to of 1386

Omer, interesting analysis. I still think the royalties could be higher, judging by other deals that I've come across. By the way, what is the recap site? What is the address? Any information would be appreciated.

To: Omer Shvili who wrote (371)	1/4/1999 6:41:00 PM
From: BRAVEHEART	Read Replies (1) \| Respond to of 1386

REQUESTED LINKS, Hi Omer & Company, Does anyone have a link to the newer FDA review process. Also Omer ( or paigow ) you mentioned a recap site with statistics on deals between biotecs & Big Pharma. Could you provide a link for that site. I would be surprised if PARS mgmt would want to incl other products. Given their financial structure and anticipated product revenue I would guess that a partnering of HU211 would be all that is needed at this stage. It depends on mgmt philosophy actually and their growth intentions. They may in fact attempt to partner the other indications to free up their cash for other projects. I personally would rather see them attempt to advance these products on their own to maximize their potential. PS: Just read somewhere that the FDA approval rate is expected to increase from 50 to 80 this year, then level off at 100 per year by 200? ( 1 or 2 ). This fact alone suggests the sector is headed for rapid growth provided the economy stays in balance. BEST WISHES LONE WOLF