AVAN has five products in the clinic that are 100% financed by corporate partners. Whether or not any of them are ultimately approved by the FDA, the corporate partners are taking all the financial risks. By investing in AVAN, you are (in effect) getting call options for free on five potentially blockbuster immuno-therapeutics drugs.

AVAN's cholesterol vaccine, CETP, has finally entered the clinic. CETP has the potential to be one of the biggest blockbuster drugs of all time (imagine, one or two shots a year and you'll never have a cholesterol problem again--without diet or exercise).

Cash and equivalents should exceed US$20 million by January. At my projected burn rate, AVAN should have enough cash to last two years. Consequently, AVAN won't have to raise capital with a dilutive stock offering at current low prices.

AVAN's market cap of US$100 million is too low considering the commercial merits of its diversified drug portfolio. By the end of 2000, AVAN should have launched three Phase III trials. This should trigger an explosive re-rating of the stock.

You can't find a low-priced biotech with greater long-term upside. I recommend adding to your position on any weakness.

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