Club Biomed &endash; Meeting Minutes &endash; 21 Jan 2004

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

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:

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.


New members voted in.

Planned Agenda items for February meeting:

-- Submitted by Andrea Hooper