To: shero who wrote (2951 ) 3/11/1999 6:18:00 PM From: True Grit Read Replies (3) | Respond to
Shero, I agree with your point about TCLN being too diluted to rise to the surface on its own accord. However, I think that the reason for the stock actually falling on the "good" news is more complicated than that. Investors have figured out that the 80% that Scherring is going to pay for finishing up of testing signals that something is very wrong in Technicloneland. We were all lead to believe that testing was/is going on very well, nearing completion, in fact. The press release blows that assumption right out the window. If testing were nearing completion, and/or the results were coming in very strong, we would not have had to ask Scherring to pay 80% of the cost of ongoing trials. Furthermore, TCLN could have gotten more than 20+3MM+unspecified royalties+mfg rights (for its own product -- like wow!) for Lym-1. The deal sounds pretty week, to me. Not much to get for a fifteen year wait. In addition, it sounds to me from the press release that TCLN is desperate to drop Lym-1. Maybe the Company should bail out of the product, but no investor wants to face the consequences of such a PR/management/research failure. The "deal" sounds all too much like that which the Company entered into with Alpha, not to mention the famous American Cyanamid debacle.
