MEDX @ 71 New Dain Raucher Analyst Report -Target 106
Dain Rauscher
by: Theczecho98 (46/M/NY)
1/24/00 4:49 pm
Msg: 15480 of 15489
Paraphrased Excerpts from todays release:
The potential of the Kirin and MEDX technologies is substantial.
AS noted following the Kirin Announcement, MEDX has put to rest any outstanding issues relating to its technology for developing fully human therapeutic antibodies.. Perceptions has held that ABGX, MEDX's only competitor in this field has maintained a technological edge as its X-Mouse employs approx 34 variable region genes for the generation of fully human anitibodies in comparison to MEDX's 7 genes.
We believe that this discrepancy has not, in
fact, provided a tech advantage for ABGX.
Be that as it may, MEDX, thru its alliance with
Kirin now has access to a system that contains
87 variable gene regions, representing the entirety of the human genes associated with the creation of antibodies.
AS SUCH, THE PERCEPTION OF ANY TECH ADVANTAGE ON THE PART OF ABGX HAS BEEN ELIMINATED, AND MAY, IF ACCOUNTING PROCEDURES PREVAIL, INDICATE THAT THE ADVANTAGE ACTUALLY RESIDES WITH MEDAREX.
Strategic development collaborations for pipeline drugs has allowed MEDX to focus on the HuMab business.
These alliances provide MEDX with upfront license fees, milestone payments, and potential royalties on sales of drugs approved for commercialization.
Importantly, these alliances also allow MEDX to focus
on the heart of their business, the HuMab technology.
So what does the future hold for MEDX??
Taking into account what the company has accomplished in the recent past, we believe that the prospects for MEDX are significant. The Kirin alliance has provided MEDX with a leading technology platform, eliminated past
perception issues relating to the HuMab technology, and paved the way for additional collaborations.
We estimate that the combination of the Kirin tech with the HuMab platform could yield collaborations up to $ 350 mil.
By entering into development agreements for its pipeline drugs, MEDX has not only secured solid cash in-flows, but also attenuated the burden of its bi-specific platform.. This should, in our view, allow the company to refocus
additional attention on leveraging the Mouse platforms (Kirin's and MEDX) into financially lucrative corporate collaborations.
We re-iterate our strong buy-Speculative Rating and are taking this opportunity to raise our price target to $106
from $66.
Mel: This is a cleaned up version of what was posted on Yahoo. 106 |
