RespireRx Pharmaceuticals Inc (RSPI)

[neuroinv]

I agree. My cynical take on it is that the 'Street' likes the deal because the earnings-per-share will be increased by cutting 4400 jobs, and eliminating some of the R&D from both sides. They view this as reducing risk, even though in the long run, it attenuates potential as well. The Street does not look more than a few quarters ahead, if that. In keeping with this, the Street punished Cypress Bioscience for choosing the re-enter R&D, and to de-emphasize a commercialization/marketing strategy that they now admit has failed. The Street sees this as adding risk--and thus CYPB is now trading well below cash value. Yet Cypress is putting itself back in the position of building something substantial for two to three years ahead, and to me that is the kind of risk-taking that the pharma industry must take on if they are to avoid becoming even more dinosaur-like than they are now.


NeuroInvestment