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Biotech / Medical : Zonagen (zona) - good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Tokyo VD who wrote (6139)	1/17/1999 3:17:00 PM
From: C. K. Humphries	Read Replies (2) \| Respond to of 7041

Tokyo, You may be right. My thinking on this is from the perspective of why a corporation would buy another company. They would basically have to buy out the total capitalization of the company and some on top to get what... a runner up on the ED market. They don't have something that makes them truly unique. They are now picking up a good percentage with little capital outlay if it does turn out to be successful anyway. ZONA has little else to offer. Also, the bloom is somewhat off the rose on these drugs. The public was looking at them as aphrodisiac more than vascular help for the sick. Viagra has seen falling sales. It may be a partial success but I think it will be the 2nd tier competitor. This is a story which is yet to be realized. I think the current valuation expresses an "irrational exuberance" which may be risky. We don't know what the medical restrictions might be when approved which may hurt the sales. It is after all a vasodilator. Often these types of stocks go down when the drug is approved as there has been too much built in already to the price. JMHO. CKH