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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Cacaito who wrote (10324)	6/3/1999 11:02:00 AM
From: aknahow	Respond to of 17367

Yes, there are some implications. Only a small part of GNE will be sold back to the public or employees of GNE. The remaining 1/3 is being acquired and after this is done about 10% will be sold to keep a public market available for the stock, especially as an incentive for employees. So of the $3 billion about $2 will need to find another home. A lot of this will stay in the biotech or drug area but not all. A considerable amount will be lost to taxes and some will go elsewhere. A billion could remain in the sector. To the extent that GNE employees are recipients of some of these funds and to the extent that they are aware of XOMA'S collaboration with GNE I think XOMA has a better shot at being looked at than a biotech with no relationship to GNE. There are of course many companies that do have such a relationship. But given the small cap nature of XOMA an inflow of even a small part of these funds would make a difference. My guess is that $20 to $40 million of these funds could end up in XOMA. That is a small percentage of the total to be received by present shareholders. Another implication of an even longer term nature is that in several more years Roche will be looking again. XOMA would seem like small potatoes but by then who knows. It will long term be "good" for the sector. Don't know about BOL. Thought Japanese or European partner more probable.