Club Biomed &endash; Meeting Minutes &endash; 16 July 2003

Welcome and monthly contribution collections.

John reported on the status of Club Biomed's real portfolio & indexes. Mutual funds (now up 6% down 1% from last month. Virtual one (up 170%%; unchanged from last month). Random Walk (up 53% from 29% last month).

The real portfolio is up 6%--even though we just converted our biggest winner to cash. Our unit price is still about $29.

Discussion of plans for next year. Members discussed their feelings about what should be on the agenda for next year's meeting. John presented a summary of our activities for last year, which included:

Organization consensus

• First meeting (introduction and planning)
• Establishing a plan & an investment philosophy
• Discussion of how to decide to 'buy'
• Created virtual and random and mutual fund benchmarks
• Developed a way of assigning partners to companies (clusters and individual stocks)
• Developed a system to follow our portfolio
• Created a report form
• Audit committee report
• Establishing a sell philosophy

Educational presentations

• On Cash Flow and PEG Ratios
• Reading a balance sheet
• The tax consequences of dividends and gains
• FDA
• The Importance of Intellectual Property

Reports on companies

• IMCL no action
• PFE bought stockwatcher report hold
• TEVA et al bought stockwatcher report-shortly
• REGN bought sold
• MLNM no action
• IDPH bought
• TLRK ??????

Some unfinished/on-going items (mostly from John)

• Proxy votes
• Finding opportunities
• More effort on sell decisions?
• Risk tolerance
• Investment styles
• Technical investing
• Fundamental Analysis
• More patents
• Better match to companies to follow over time
• Mechanism pick company to study
• Better place to keep cash
• Sector reports?

Actions: Andrea will look into establishing a site to replace tight circle that can be implemented for the next year. John will work with Deirdre and other interested partners to develop a series of companies and projects that partners can study. They will try to do this in a way that we can take advantage of 'fast breaking' news and scientific reports that we can evaluate.

Report on TLRK by Marc, Steve, & Jeanne. Steve and Marc summarized the history of the company and haw it evolved. They concluded that although the underlying idea and strategy of the company were intriguing, the company has not succeeded. They also pointed to a 'disconnect' between the scientific strategy and the products that were under development. They recommended that we should not purchase the company. Their slide show will be posted and a formal report will be posted when it is submitted.

Stock watcher's report. Andrea reported on the recent performance of TEVA. The stock price has improved, but earnings and the introduction of new products match this increase. The company is performing well and is worth retaining in our portfolio.

Contingency buy plans?. Neil and Carlos expressed the feeling that the market was due for a drop and that we should make a contingency plan to use our cash to take another position or ad to our TEVA position when it occurred. There was not enough time to discuss this adequately, but it will be added to future business.

New Member: Charles Inturrisi attended the meeting and was voted in as a partner.

Planned Agenda items for Sept or other fall meeting include:

• Presentation and discussion of CEPH
• Continuing discussion o selling--a questionnaire on risk
• Presentation on stock evaluation (Gus K will present in October).

-- submitted by John Wagner