Club Biomed November 2002

• Welcome and monthly contribution collections. Beth Bolan, who is interested in joining the group, sat in on the meting.
• Carlos D. and John W. reported on the status of the virtual portfolios and Club Biomed's real portfolio.
  • Virtual Portfolio: down up 60%
  • IMCL--We talked about the reason for this strong increase in price and identified several potential reasons, including: increased activity of the firm on wall street to create an environment to raise money, the possibility that the company may be purchased by BMS, the rumors that Erbitux may be moving through the FDA approval process. We will keep watching and learning.
  • Random Portfolio: up 5.26%
  • ANPI; CYAN; GLGC; VRTX, CTIC, JNJ
  • Mutual Fund Portfolio: down 7.3%
  • Club Biomed's real portfolio: down 0.73%
  • Carlos also updated members on their current ownership position.
  • We picked Tularik and Tanox for Random Walk.
• Educational presentation: John reported on the tax consequences of dividends and gains from stocks (both realized and unrealized) and how these apply to a Club Biomed Partner.
• Stock presentations: The generics group (which includes Simne, Juliana, Deirdre, Jeanne and Jennifer) reported on their deliberations leading up to their decision to report on TEVA, which they recommended for purchase. Their written evaluation was posted on our Web site and mailed to all partners a week before the meeting. Many partners expressed their gratitude for having the evaluation before the meeting and they felt that it led to a more interesting discussion. The presentation included a description of how generic drugs are approved in the US and the business strategy of generic companies as opposed to biotech and big Pharm.
• The presentation was complicated and the group did not quite finish by the end of the meeting, so John suggested that the discussion should be carried over to the next meeting. He asked that partners express their concerns about the company so that the group could incorporate these into their presentation in January. Some of the concerns expressed by the partners include:
  • Is TEVA really stronger than its closer competitors? Could we get a short report on another strong company in the area?
  • Much of the strength of the company is based on a large growth rate, but is that rate sustainable?
  • What is the mechanism of the MS drugs that the company developed through its inovation program?
  • Is the company priced to high? Might this be a company to watch with the intention to buy if it s price becomes more reasonable?
  • New business. John reported that, sadly, Joel has resigned his partnership. Whereas the cash position of the partnership is strong the Partners decided that Joel's shares should be redeemed at the current Unit price and that a check should be sent to him before the next meeting.
• New Business:
  • Since Joel has resigned from the Partnership, no proposal to require a written evaluation prior to the purchase of a company was available to discuss, so this was postponed this the next meeting.
  • John appointed four members to the Audit committee. These include Andrea, Constance, Steve, and Mike. They will report in February or March.

   

• Planned Agenda items for 15 January meeting includes:
  • Report on the Pharmacia purchase by Pfizer
  • The conclusion to the presentation from the Generics Cluster
  • An educational presentation on the FDA and the drug approval process
  • Discussion of a policy on written reports (Or February?)
• Possible Agenda items for February
  • Presentations on Regeneron or Cephalon (by Neil and Laura)
  • Report from the audit committee (or March)
  • On patents and their use

Grudgingly submitted by John Wagner