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

To: Mike McFarland who wrote (368)	5/26/1999 10:16:00 PM
From: LLCF	Respond to of 579

<So...LLY has an option to become a partner for the two in phase II, what a deal, no risk for LLY. Unfortunately less reward for SIBI--great data, okay, we will be happy to take that off your hands. But mainly just confusion for shareholders> IMO the company was going to have to partner anyway at some point... the last thing we want is another sales force running around at our expense with one product to sell! We'll find out if they should have waited for data when it comes out, nyuk nyuk. Since we don't know the % royalties (which I agree, sucks) we don't know if the deal is good or bad. Here's my opinion of a summation of SIBI's investment opportunity: 1.) Company just got guaranteed $20 million research coin over 3 years. 2.) The company has a market cap of $40 million... so each shareholder just recieved another $2+ worth of research funds for their scientists to do their thing with. 3.)The company has sold quite a bit of it's upside, but given 2.) above, 10-20% royalties off a drug or two with decent indications is huge none-the-less... 4.) The chances of a fruit bearing outcome has skyrocketed. 5.) We've traded a watermellon patch for a fruit tree. Now lets just hope it's not of the lemon variety! DAK

To: Mike McFarland who wrote (368)	5/26/1999 10:45:00 PM
From: scaram(o)uche	Read Replies (2) \| Respond to of 579

Mike: What do you think the royalty is that is associated with the option? If it's 20% and (1) Lilly pays for all clinical development if they exercise the option, and (2) SIBI feels great because they now have the resources to develop the VGCC/pain program, what will you think? These were small, phase II projects. I don't expect to have a $50/share company overnight, so I'll wait to see what the terms are. They were going to license, that was clear. Now, they have given an option. I consider that to be quite clever, if the proposed revenue streams are reasonably divided. We'll see how it turns out. I'm surprised by the intense negative sentiment. I walked away from today's session as a happy camper, even with the weak close. Good luck, all! Rick