Welcome and monthly contribution collections. We asked partners to share investment ideas or thoughts about companies etc. John mentioned Crucell (CRXL) as a stock to watch and Deirdre wondered if we looked at this stock previously in a binary event presentation. Carlos suggested we beware of companies that depend on academia as their major source of revenue due NIH budget cuts likely to effect business. Neil suggested we look to companies that are potential buyout or acquisition targets as stock often goes up in such deals &endash; particularly companies with technology.

John, Carlos, and Jeanie reported on the status of Club Biomed's real portfolio & indexes

• Club Biomed Portfolio up 11.77% (last month, 3.75 %)
• with a $2131 cash (down from $4012 cash last month)
• Club Biomed shares $ 30.46 from $28.42 in Nov
• Mutual funds up 13.4 % (from 5.25 %)
• Random walk up 85% (from 53.2 %)
• Virtual one up 223% (from 168 %)

Educational presentations: ECON 202 by John. John presented part two of the presentation he began in November. He went into the basics as well as detail about cash flow and balance sheets followed by examples of how the balance sheet is related to income statements and cash flow and vice versa. He used Amylin's financial sheets as examples.

Shall we sell Amylin (AMLN). Connie reported that in mid December the FDA rejected AMLN's application for drug approval for Symlin for the second time being that it was an approvable drug however the application required additional clinical data. A subsequent conference call - which was not open to the public - resulted in a disclosure scandal that is being investigated by the SEC. However all this resulted in not too dramatic of a stock price decline as positive data from the bigger drug Exenatide were released. Connie suggested that most likely this whole scandal would result in small fines for the CEO. During the discussion the following thoughts and questions arose from several partners:

• Should we sell AMLN? Should we put AMLN money into something more small cap, risky etc?
• Several people addressed that there is not another major binary event coming up. The binary event we bought for has past -- so why stay in the stock?
• Cash is not action
• Our stocks are performing less than general biotech market so should we be looking elsewhere?

We agreed not to take the money out unless we have other candidates which at this point we do not. Let's look at more stocks next month and revisit the issue while watching AMLN carefully.

Report from the 2003-4 audit committee. The audit committee decided to present at February meeting in the interest of time.

Planning the Spring/Binary event committee. Various stocks were proposed by binary event committee and other partners for further presentations:

1. Conjuchem (CJC.TO). Developing drugs for Type II diabetes, Have a binary event coming up in May, no IP issues, undervalued, recent excitement, binary event may serve as a catalyst for partnership leading to another binary event. Deirdre, Joe & Justin.
2. Progenics (PGNX). Have drug which blocks gut opiod receptors thereby reducing unpleasant side effects but still allows for analgesic effects of opiod use. Undervalued company, binary events to watch. Jordan, Chuck and another person (not sure who).
3. Genta (GNTA). BCL2 antisense oligos, chemo sensitizers for malignant melanoma, multiple myeloma, CLL phase III trials. NDA filed for fast track, binary event approaching in 6 months or so, partnered with Aventis. Connie & Mark.

Appointment of Stock Watchers.

• Biogen Idec (BIIB) &endash; Sasha
• Amylin (AMLN) &endash; Deirdre
• Cephalon (CEPH) &endash; Imke

New members voted in.

• A. John Calegavi,
• Lionel Ivashkiv, and
• Maya Ebert.

Planned Agenda items for February meeting:

• Report from Audit committee.
• Report from the Progenics, Genta and Conjuchem groups.
• Revisiting Amylin status.
• Patent law speaker for the Spring

-- Submitted by Andrea Hooper