As of Nov, 12, 2002, selling at $1.41 with over $4 cash.
The minuses
1. Anti takeover provision
2. Schering quits joint venture, Wall Street lemmings sell
3. Product has mixed reception with physicians
The pluses
1. CEO (in todays telecon) says antitakeover provisions would not impact decent offer to shareholder (they are meant to prevent partial control by someone who would squander resources
2. Not a development stage company. It has product approved by FDA to remove actinic keratoses (which are sometimes precancerous)
3. It is addressing the 2 issues of concern to physicians - reimbursement (by helping a physician in his filings) and by seeking broad level AK approval from FDA (which would allow company to fight many lesions on face/scalp at one time (greatly improving economics)
4. It should know of its success or failure in the above areas in less than 18 months - by end of 2003 (roughly same timeframe) it should have about $2.50 cash/share
5. CEO/Chairman seemed refreshingly down to earth in conf call
6. Also seeking partner for use of technology to fight Barretts esphogus (precancerous lesions)
7. All the above technology uses a solution to selectively absorb in fast growing cells, then use of light which activates solution to kill the cells.
Sources - recent press releases and todays conf call.
Do your own DD, above hopefully accurate but not guaranteed. Comments welcome. |
