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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: David S. who wrote (2746)11/12/1997 9:59:00 PM
From: Joe E.   of 6136
 
<<If you want to look at valuations, I just glanced at Vertex estimates. For 1999,
consensus is $1.93,which puts it at 19x. Consensus for AGPH for '99 = about
$2.00, since FY '99=$1.76 consensus. So, AGPH is at 20x cal. '99>>

IMO Vertex may not have any product sales in 1999. Probably will, but not necessarily. Agouron will have product sales, and they are not so hard to forecast, given that the company has a track record now. So this makes Vertex's earnings forecast a little less solid than Agouron's. Vertex is rolling in cash, though. Merck is at about 17x '99 EPS.
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