LGND a top pick of The Medical Technol. Stock Letter
3XJ:
Maybe this might be of interest to you and others on board from The Medical Technology Stock Letter:
"Thursday, September 23, 1999
Interview with Matt Berry, Assistant Editor of the Medical
Technology Stock Letter, on the biotech industry and
companies they like.
BIOTECH STOCKS RETURN TO FAVOR: THE NEXT VIAGRA
The Medical Technology Stock Letter has had a torrid year - the aggressive portfolio is up over 55% while the model portfolio is up 21% - as biotech stocks return to favor. Matt Berry, Assistant Editor, thinks that these trends will continue for the rest of the year for several reasons.
Many larger drug companies are looking to add to their product pipeline, and smaller biotech companies have a number of products well along in the approval process that would fit very well in many drug company portfolios. Many of these smaller companies need cash according to Matt, so they have a mutual interest in merging or joint ventures.
While the biotech rally has been led in large part by large cap stocks Matt sees this rally broadening to include second and third tier companies, and money from the hot Internet sector may begin to filer back into the biotech sector.
When looking for attractive companies the Medical Technology Stock Letter looks for a number of factors, including technology, the target market, competitors, management, the science involved, and the number of products a company has in development. Because many of these companies are not profitable current profits, or lack thereof, are not a great concern - especially if
products are well along in the approval process.
The FDA has made a number of changes recently that have made approval of biotech drugs more streamlined, and the process has brought drugs to the market quicker.
Companies Matt likes include Chiron (NASDAQ: CHIR). The company has an excellent new management, and has streamlined the focus of the company to concentrate on controlling costs and recognizing earnings from developed
products.
Another favorite is Isis Pharmaceutical (NASDAQ: ISIP), which is a buy below $20. The company has a product to treat a symptom of AIDS, and while the market is not large the product approval validates the technology that ISIP has developed. The drug turns off the disease by accessing the proteins that cause the disease, and this company is a "steal a current price levels." They also have
an interesting drug being developed for Crohn's disease.
Matt also likes Ligand (NASDAQ: LGND), which he thinks is well managed. The company has a product that may be used for breast cancer, and has a number of other products that are interesting.
Corr Theraputiecs (NASDAQ: CORR) is in the cardiovascular market, and is a potential takeover or merger candidate. Sales have "ramped up" very favorably.
ICOS (NASDAQ: ICOS) is also a favorite. The company is working on a drug that could be the "next Viagra" with fewer side effects. Eli Lilly is the development partner in the male erectile disfunction product, and they have 4 or 5 other products that are very attractive. Bill Gates owns 13% of the company, and it was founded by the founder of Amgen. It has a very diverse product
pipeline, and a good clinical development strategy.
Last, Matt likes NPS Pharmaceutical (NASDAQ: NPSP) who he thinks is undervalued. Amgen is a partner with NPSP, and the company has plenty of cash with encouraging results so far with products in development."
The Medical Technology Stock Letter has a website at bioinvest.com
I like LGND because it has several big pharma partners and it seems to have more upside potential on a percentage basis than some of the other more expensive biotech. co. mentioned in the article and in the interview which can be downloaded at audioinvestor.com
Regards,
Jake Blackmerlin |
