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Biotech / Medical : MGI Pharma MOGN New patents, anti cancer

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From: tom pope10/8/2007 8:36:43 AM
   of 1826
 
Merrill on MOGN:

MGI Pharma (MOGN, US$29.75, C-1-9) Raising PO to $35 on
greater Aloxi confidence
We raised our PO to $35, based primarily on greater confidence in Aloxi’s sales.
We increased our 3Q07 Aloxi projection to $65 MM, which is now above
consensus of $61 MM, and also our ’07 EPS est. Aloxi’s strength is due to
favorable profitability for oncologists, active promotion, and a solid clinical profile.
In addition, we added Aquavan and AKR-501 to our valuation. We estimate Aloxi
is worth $20.50 based on a peak sales estimate of $400 M.
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