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Biotech / Medical : wla(warner lambert) -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (505)	1/27/1999 11:06:00 PM
From: Greg Jenkins	Read Replies (1) \| Respond to of 942

I have the opinion of AG Edwards for the earnings results dated 1-25-99. However, it is 4 pages long so I will post a little bit at a time starting in the next day or two. However the following is dated 1-26-99 regarding the merger announcement: 1-26-99: Recent Development: WLA buys agouron pharmaceuticals for $2.1 billion, $60 per share. After the market closed today, WLA announced the signing of a definitive agreement to acquire Agouron Pharmaceuticals (AGPH) for $2.1 billion in stock. We believe this is an excellent acquisition for both companies. The non dilutive transaction will provide current AGPH shareholders approximately $60 in WLA stock for each AGPH share held. The transaction will be accounted for using the pooling of interests method and is intended to be a tax free transaction. The deal has to be approved by AGPH shareholders and the standard regulatory agencies. AGPH had $467 million in revenues from its one product, viracept, an HIV protease inhibitor for use with AIDS/HIV infection, in its 1998 fiscal year ended June 1998. In the US viracept leads the market in both dollar and prescription terms. In addition to viracept, AGPH has two late stage HIV products in clinical trials and one late stage cancer product candidate. Behind these late stage programs AGPH has a full R&D effort that even includes a product candidate that may hold promise in treating the common cold. From the deal WLA gets fully active programs and products in HIV, cancer, and a division specializing in rational based drug design. AGPH gets the resources of a global pharmaceutical firm. In short, we believe that this transaction will be very good for the merged firms. We reiterate our buy on the WLA shares. ------------------------------------------------------------------- I post the opinion regarding the earnings soon. Greg J.