Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (6330)	1/18/1999 12:30:00 PM
From: Merritt	Read Replies (2) \| Respond to of 9719

Peter: I used to own some SEPR, but when they announced the deal with SGP (with no royalty details), I got nervous about their patent position. My thinking went that Claritin was on schedule to be a $2 bln drug this year, the deal with SEPR would effectively extend their patent by about 4 years...4 year extension on a $2b product for $5mm = chump change. That, plus the convertible at $47-$48 might put a cap to the upside...so the "smart" thing would be to sell. (Well, you already know I'm no genius.<G>) Obviously my thinking didn't coincide with all that many others, but I'm still not sure about the strength of their patent positions...and still wonder about the co's own feeling. It may be that they negotiated with the thought of saving themselves a lot of hassle down the road, or maybe not that far down the road...they could have felt that patent battle wins would have been Pyrrhic victories, as they wouldn't have had any money left to pursue their research after the big druggies got through with them...I don't know what their thinking was, of course, and I suspect my doubts may just be the rationalizations of someone who sold too soon, but...