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

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From: tom pope6/18/2007 9:50:31 AM
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ML:

MGI Pharma (MOGN, US$23.05, C-1-9)
Reiterate Buy; Raising PT to $28 from $25; Raise EPS estimates. Based on
newly released 3Q07 Medicare reimbursement rates, which increase doctor
profitability when using Aloxi vs. generic Zofran, we have greater confidence Aloxi
sales will rebound in 3Q. Since 4Q06, Aloxi has lost share to generic Zofran
because of a Medicare reimbursement anomaly that produced about a $42/dose
profitability benefit for docs that used generic Zofran instead of Aloxi to treat
chemo-induced nausea. But, beginning in 3Q07, we expect share to shift back to
Aloxi based on its revised $46/dose profitability benefit.
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