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Biotech / Medical : AXYS Pharmaceuticals Inc. -- Ignore unavailable to you. Want to Upgrade?

To: David Bogdanoff who wrote (261)	5/12/1999 3:26:00 PM
From: John Dwyer	Read Replies (1) \| Respond to of 455

Don't forget the failure of their lead compound... I have also followed these guys for quite awhile. I stayed away for most of that time because I didn't like their lead drug and I didn't like the Delta hype. Now, Delta is out on the table and their lead drug is dead so we have a fresh start. I started accumulating about six months ago and have continued to add to my position. I think AXPH is a real good long-term bet at these levels. You make an important point about M&A activity and egos. I have heard that argument and I think there is some truth to it, however, I think that the lack of M&A is related to the lack of IPO's in the sector. Most 2nd and 3rd tier stocks are weak, they do not have ample amounts of cash and their stocks are beaten up, making them weak currency. Look at the indigestion Arris had merging with SQNA... I think they pulled it off pretty well yet they get crushed. Would _you_ want to merge under this kind of environment? M&A will happen in the first tier group because the strong top tier biotechs and big pharmas have strong stocks and ample cash so they will look to add specific products to their overall mix of therapeutics. I really doubt that will filter down to the lower tier until their stocks start performing better. This group seems to rebounding somewhat, perhaps there is light at the end of the tunnel! John