"rationale for these two options plays"
i'm attaching part of the s & p report on medi. the financials did not copy well so if you are interested i'm sure they can be found on medimune web pages or from you own sources. i bought options early last year and exercised. today i bought some more options. fantastic revenue growth was what caught my eye. also i am looking to diversify out of msft, cisco, sunw, dell etc. would you like me to post s & p on amgen? you indicated you were familiar with that one.
regards
STOCKREPORTS MedImmune, Inc. Nasdaq Symbol MEDI
Biotechnology Summary: This company develops, manufactures and markets therapeutics and vaccines to treat and prevent certain infectious diseases and cancer.
Recent Price 55.13
52 Wk Range 66.00 - 21.00 Yield Nil
12-Mo. P/E 47.9
Overview 20-JAN-99
Fueled by robust sales of the new Synagis drug, total revenues could reach $275 million in 1999, up from the $180 million indicated for 1998. Launched in the U.S. in September 1998, Synagis is expected to achieve sales of over $200 million, up from an estimated $70 million in 1998. Used to prevent respiratory syncytial virus (RSV) disease in high risk infants, Synagis has replaced Respigam, MEDI's first product for RSV, reflecting its efficacy coupled with ease of administration. MEDI has contracted with Abbott Laboratories to co-market Synagis. Higher sales are also forecast for CytoGam, augmented by a recent FDA expansion of that product's label. Margins should widen appreciably on the better volume, and EPS (adjusted) are projected at $0.90, up from the $0.15 indicated for 1998 (before nonrecurring items).
Valuation 20-JAN-99
The shares were strong performers in recent months, boosted by the general market rally, exceptional strength in the biotech sector and several positive developments at MedImmune. The recent U.S. launch of Synagis, a treatment for respiratory syncytial virus (RSV) in infants, exceeded expectations. RSV is the most common cause of pneumonia and bronchiolitis in infants and toddlers. Synagis will also be introduced in Europe once regulatory approval is obtained. Bolstered by a co-marketing deal with Abbott Laboratories, sales of this drug could exceed $300 million within a few years. Promising products in the R&D pipeline include a treatment for graft-versus-host disease and vaccines for human papillomavirus (HPV) and Lyme disease. The shares offer speculative appeal for above-average appreciation.
Key Stock Statistics
S&P EPS Est. 1999 0.90
P/E on S&P Est. 1999 61.3
Dividend Rate/Share Nil
Shs. outstg. (M) 53.4
Market cap. (B) $ 2.9
Inst. holdings 98%
Value of $10,000 invested 5 years ago:$ 100,227
Revenue (Million $)
1999 1998 1997 1996 1995 1994
e275 200.7 80.96 41.10 27.44 18.86
Business Summary 20-JAN-99
MedImmune focuses on developing and marketing products for infectious diseases and transplantation medicine. Since the start of operations in 1988, the company has sought to establish an initial commercial base using proven technologies and targeting well-understood diseases to support longer-term product development. This strategy has relied on the advancement of an internally developed pipeline of product candidates and on in-licensing products from third parties.
In September 1998, the company began marketing Synagis, a humanized monoclonal antibody that is effective in neutralizing respiratory syncytial virus (RSV). This condition, which is the most common cause of pneumonia and bronchiolitis in infants and toddlers, affects about 300,000 children in the U.S. each year. MedImmune also plans to market the drug in Europe once regulatory approvals are obtained.
Another important product is CytoGam, an intravenous immune globulin enriched in antibodies against cytomegalovirus (CMV). This product is marketed in the U.S. for the attenuation of primary CMV disease associated with transplantation of the kidney, lung, liver, pancreas and heart. Cytomegalovirus (CMV) is a major cause of illness and death in patients with weakened immune systems associated with organ transplantation or immunosuppressive diseases such as AIDS. In 1997, sales of CytoGam totaled $20.3 million, up from $18.4 million in 1996.
As a result of the recent launch of Synagis, the company reserved $9.2 million against its RespiGam inventory, as it does not expect any further product sales to result from this inventory. RespiGam was launched for sale in January 1996 for the prevention of respiratory syncytial virus (RSV) in infants with bronchopulmonary dysplasia or a history of prematurity. RespiGam is also injectable immune globulin, but contains naturally occurring antibodies to RSV. Sales of RespiGam were $45.0 million in 1997 and $17.3 million in 1996. The company has a royalty agreement with American Home Products (AHP) for sales of RespiGam. AHP paid $4.5 million to MEDI as a milestone payment after the U.S. FDA approved RespiGam.
Products in the R&D pipeline include vaccines for human papillomaviruses (HPVs) and MEDI-507 for graft-versus-host disease and certain autoimmune disorders. There are over 75 different types of HPV associated with a variety of clinical disorders ranging from benign lesions to potentially lethal cancers. Four types of HPV cause the majority of genital warts and cervical cancer cases. In December 1998, the company licensed Pasteur Merieux Connaught, a subsidiary of Rhone-Poulenc S.A., to develop a second generation vaccine for the prevention of Lyme disease.
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