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Biotech / Medical : Techniclone (TCLN) -- Ignore unavailable to you. Want to Upgrade?

To: john dixon who wrote (2938)	3/9/1999 9:57:00 AM
From: shero	Read Replies (1) \| Respond to of 3702

I think its a good deal, in fact better than I would have thought, all things considered. BTD comprised is agreement allowing TCLN to keep more up front cash. The burn rate is reduced as 80% of the costs of the trials are being paid for by our new partner. With this cash and the latest draw down from the "LOC" the company may not have to draw-down or issue more stock for awhile. And it shows outside interest in licensing VTA, another TCLN platform technology. And most important it STARTS to establish some credibily for "new" management, something that has been missing for years. All in all, I find this very encouraging.

To: john dixon who wrote (2938)	3/9/1999 8:10:00 PM
From: EZLibra	Read Replies (2) \| Respond to of 3702

Hi John, I'm still ruminating over an answer for you. I don't like giving up world-wide rights, especially without knowing the royalty. If we're paying 20% of the cost of future trials then is a royalty of 20% too much to expect? It probably is but I think the manufacturing kicker more than makes up for any slight in royalty stream. Let's hope it's double figures. The ongoing Phase III is the majority of the monthly burn so this definitely helps. Schering negotiated with Coulter a long time and undoubtedly is well aware of Idec's expansion plans so I think the license can be considered a strong endorsement of Oncolym efficacy. The 20 million in milestones is comforting and will probably be more than matched by Schering's 80% cost of future trials. Techniclone/Schering has a manifest destiny in all grades of NHL as well as chronic lymphocytic leukemia, especially in combination with fludarabine. I assume Schering has already cleared the first of these trials with FDA. For TCLN's financial contribution I also assume that within a year Oncolym will have been approved for its' current indications. Off-label usage should also be substantial, much like it has been for Rituxan, so future trials could be sustained by Oncolym alone. Manufacturing is a real plus even though we may have to retool. It was a about a third of the profit in the Alpha deal and takes us back to our roots. It is also something neither Idec nor Coulter has been able to control so it may be a strategic advantage. I think this deal clears the decks for us at this time. Our limited funding must have been drained substantially by the many Phase III sites. Now the TCLN team can concentrate on the much larger platform technologies. (By the way, the filing last Friday was only for the agents' commission on the Line of Credit, there was no further draw.) Concerning the look-see granted (or bought) on the VTA technology I have no problem. It does have a time constriction, TCLN has evidently learned to say 'take it or leave it'. If Schering wants to pay up for the platform more power to them. They have the muscle to develop it. I don't think Bonfiglio/Bymaster are going to give a $100 million license away for $30 million. Circumstances have changed. I would like to know where we stand on the radiolabeling, who controls it, etc. (I think Schering just owns it all now.) Also what is the deal with the Legeres now? The 10K will once again enthrall us I'm sure. I have little doubt Oncolym will soon earn its' rightful place among NHL treatments. I even think, considering the three million, it will be able to earn its' keep and Tustin can now concentrate on VTA, VEA, the fusion peptides and of course the crown jewel of cancer therapeutics - TNT. Bymaster is in NYC next week, it's front and center time Larry. We the public have to wait until ASCO, for some unfair reason, but can't you clue in a few analysts about the trials? We need for them to know and all that. We're depending on you. You too Ruby. BTW, the grapevine tells me our old friends known as John-Mark decided the announcement did not warrant their 'support' and decided to sell at 1 13/32. They sold a lot, just like they did the last time at 1 1/2. They don't have an infinite supply. Nice answer, huh John? I think TNT is so needed and so important that it's time to go for it, it's time to throw maximum support behind it even if it means giving up more than we might have on another technology. I think the Schering deal fills a lot of sails with a fair wind. I am betting that TNT results will be so impressive that our course from now on will be with that fair wind, the tide and even lady luck. I think TNT results will be so demonstratively clear that our future will be forced upon us and we need to be ready. The longer we hold onto TNT the better off all of us shareholders will be. Striking this license was needed. There will be other deals struck,IMO. So yes, I think this license was a good deal.