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Biotech / Medical : SIBIA Neurosciences (SIBI) -- Ignore unavailable to you. Want to Upgrade?

To: RWReeves who wrote (357)	5/26/1999 4:23:00 PM
From: LLCF	Read Replies (1) \| Respond to of 579

<Seems like for the $ paid, plus clinical development, a bit cheap for the package which does seem to amount an inexpensive call.> On the face of it I agree, and usually people don't realize how valuable an options contract can be, weather it's land, patents, whatever. BUT as Rick's post points out it all depends apon the royalty rate, which we don't know. It would be nice if LLY would pick up the P3, cheap sons-a-b**chs. dAK

To: RWReeves who wrote (357)	5/26/1999 4:31:00 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 579

Yeah, Lilly got quite a deal. However....... SIBI got a nice chunk of cash for research on molecules apart from 1508 and 1553, and we don't know the royalty details attached to the option. I'll bet that they're very attractive. If so, and if the phase II data for either molecule looks decent (as many here know, I'm not invested due to either of the lead molecules), then we'd have Lilly fully funding the phase III trials while SIBI just sits back waiting for data and money. I like this sort of deal...... good for the pharma, good for the biotech if the data fits the market. I won't like it if Lilly can pick up the option at anything less than 15%, and I don't think that 20% is unreasonable given the circumstances. Pretty crummy release. After all this time, we got the standard SIBI communication...... totally insensitive to their small shareholders.