VISX Message Board - Msg: 12942059

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VISX

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Charlie Smith who wrote (1619)	2/22/2000 4:57:00 PM
From: mts362	Read Replies (1) of 1754

Well, VISX finally caved in. That $250 fee couldn't last forever - the market's been telling us that lately. Some preliminary calculations: most analysts put VISX procedures in 2000 around 1 million * $250 = 250mm in license revenue (old price) Take this down to ~$110mm with the new price (1.5 months' procedures have already been done). My rough calculations indicate that estimates will have to come down to about $1.10 for 2000 from $1.62. VISX says they are doing this to grow the market, but keep in mind: This action (by itself) will only lower the total procedure fee from the $1500-$2000 range to the $1400-$1800 range. Is that really going to bring in a rush of new patients?? VISX is doing this because they have to, not because they want to. In analyst meetings with the CEO (Mark Morgan), he had made it clear, as recently as December/January, that they didn't want to reduce the fee. They caved in so they wouldn't loose share. Just a quick analysis - I'd be interested in hearing anyone's thoughts on the stock. Disclosure: I have no position in VISX, although it is getting attractive at these levels. MTS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next