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Biotech / Medical : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (283)	3/18/1999 11:30:00 AM
From: scaram(o)uche	Respond to of 3158

>> When there are no sales or earnings why merge? << I think that I've covered this in earlier posts.... good pipelines and patents are discounted to the point that "future pharmas" can now be created for a song. "One" should repackage them as what they could be, going forward..... companies that can compete on equal footing with pharmas. Long ago, in some thread somewhere, I proposed that NRGN, GLFD and SIBI should be merged and integrated into MLNM as MLNM-neurology, going forward. That is not a silly concept. It seems that the only company out there with foresight is LKST. Everybody else seems to be flapping their lips and wearing blinders.

To: aknahow who wrote (283)	3/18/1999 11:00:00 PM
From: LLCF	Respond to of 3158

<. When there are no sales or earnings why merge? Partnering would still seem to be the better option.> Well, the beauty of this arguement is that over the next year or so we'll find out! I hear what you're saying, and it does make traditional wall street "don't want to do a dilutive deal" sense... however: 1.) I just can't believe that Big Pharma would rationally approach this industry with that mentality... EVERY big Pharma could show awesome earnings for the next 5 years just by cutting their research budgets to $0! Yet they spend BILLIONS... it is also self evident IMO to these guys that if they can buy better pipelines than their teams can produce they will do it... if not they'll do it themselves. 2.) MRK could buy 1/2 of the stocks ever mentioned on the "valuation" thread and dilute like a nickle a year. 3.) You are correct that their is absolutely no evidence yet of wholesale consolidation replacing Partnering... but I'll stick my neck out again and say that a few outright purchases to get the ball rolling could create a paradigm shift. 4.) Enough companies have already announced their intentions and there is no reason to NOT take them at their word. 5.) As with any other merger wave I predict that it will ABSOLUTELY find its way down to the very bottom (sorry 3rd tier... did I call you the bottom?)... all you would need is a couple second tier companies stock swap for the OSIP's of the world, or merge with another 2nd tier to try to ward off the big guys. Maybe this is GILD's thinking?? From todays action I'd say it didn't work! Anyway just my thoughts as well... I guess my basic point is really that if you start talking about the BAYERS of the world, most of these 2nd tiers wouldn't effect earnings anyway. DAK