Shares of Biochem Pharma Start to Climb
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individualinvestor.com
Senior Analyst: Eric Singer (1/17/00)
Shares of Biochem Pharma (NASDAQ:BCHE - Quotes, News,
Boards) have traded up by more than 30% over the past month
as investors are beginning to recognize the company?s intrinsic value. On January 10th, management presented at the annual Hanbrecht & Quist Healthcare Conference in San Francisco, California, providing investors with an upbeat assessment of business prospects and market opportunities.
Management indicated that it expects sales and royalties for
3TC/Epivir to increase by 20% in fiscal 2000. Fueling this
expansion is continued strong sales for 3TC to treat HIV. In addition to the expected increase in new HIV cases, sales will be bolstered by the development of new HIV therapies that use 3TC as part of combination therapy treatment. 3TC has a proven efficacy and safety profile that make it a leading component in combination therapies.
Also fueling growth is the expected acceleration in sales of Zeffix to treat hepatitis B. Zeffix is the first and only approved oral antiviral drug to treat hepatitis B. Sales should accelerate as marketing efforts pay off in International markets. Additionally, mounting approvals for government reimbursement in the Asia-Pacific region, a key market for the drug and a region where hepatitis B is most prevalent will boost sales.
On the research and development front, where Biochem
Pharma has many exciting advanced stage products under
development, management indicated that it plans to continue
with the development of dOTC for the treatment of HIV/AIDS.
Early clinical data for this compound is exciting and Biochem has retained 100% of the rights to the drug. Troxacitabine, a drug to treat various cancers, is proceeding well in Phase II trials. By year-end, Biochem expects to have 13 drugs on the market or in various stages of clinical development.
We continue to be enthusiastic with respect to the Biochem
story and investors are catching on. Biotech shares have traded up sharply in recent weeks on investor enthusiasm for prospects in 2000 and beyond. Biochem, with a highly successful compound in 3TC and improving momentum with regard to the hepatitis B indication, is poised to show strong earnings gains in the coming quarters. As momentum for Zeffix builds, investors will show increased confidence in the story.
Shares of Biochem continue to represent compelling value, despite their recent surge.
Analyst: Eric Singer Updated on 01/12/00 with BCHE at $27.50
Recommended on 12/11/99 at $20.81 |
