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

To: Tony van Werkhooven who wrote (373)	12/29/1998 3:15:00 AM
From: Omer Shvili	Read Replies (1) \| Respond to of 1386

Tony, Some explanation on the different parts of the deal. Up front fee = cash to PARS at the signing. You're right, this goes directly to the bottom line. R&D payments = this means that the total sum would be spread up over a couple of years or so, and PARS would get a piece of the money every quarter. PARS will have R&D revenues on its P&L besides revenues from lotemax and alrex. This is nice too, as its revenues that have no expenses attached to them. PARS can do what it want with the money, i.e. push other indications or other project forward. milestone = again the sum is split up into pieces, and PARS would get these when it achieves certain milestones (completes PIII, files NDA etc.) Equity investment = no need for explanation here. Royalties = no explanation either. You're right, such a deal will add a lot to PARS, and when revenues kick in, they could be very big. If Partner sells $500 million in 2001, we get (assuming 13%) about $65 million that flow almost entirely to bottom line. And that's US sales only, Europe and rest of world are big markets as well. When you say $20 stock, you're not just dreaming. It could happen within 2-3 years, as long as HU211 gets approved. That's not such a small IF, but it isn't as big as it was 6 months ago either. Omer