BioSepra (BSEP) -- Biotech Supplier Play Message Board

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Biotech / Medical : BioSepra (BSEP) -- Biotech Supplier Play

BSEP 49.55

-0.1%

4:00 PM EST

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To: Chuzzlewit who wrote (1)	4/29/1997 11:37:00 PM
From: Ed Ajootian	of 20

Paul, Part of the reason for the lower margins was the FX loss due to the strength in the dollar vs. the European currencies. I have a call in to the company to find out the rest of the story. If a price war is developing, fine. BioSepra has a parent with deep pockets who has not hesitated to pump more cash into this company in the past. Sepracor (a publicly owned biotech company -- see separate thread) owns 64% of BioSepra. Last year when BSEP needed more cash to pay legal bills and to spruce up its balance sheet, Sepracor anted up $6 mm, and took back stock at a rate of $4.05 per share! The reason for the decrease in G&A expenses is that they did not have to pay as much legal fees this year as last year. The court case was going strong in 1Q '96 whereas by 1Q '97 it was basically in a holding pattern, waiting for the ruling. The key growth area for BSEP is going to be providing chromotographic media to purify drugs that are based on monoclonal antibodies. These kinds of drugs are the single largest class of drugs that are currently in Phase II or III testing. BSEP's media is the best media to use in making these drugs. Anywhere from 30% to 80% of the total cost of making these drugs is the cost of the chromotographic media. BSEP has a marketing alliance with industry giant Beckman Instruments. Beckman is pushing BSEP's stuff all over the US, Europe and Japan. It is unusual for such a small company as BSEP to have such a broad international presence. It has now been about 4 months since the FDA announced the relaxed rules about letting companies switch media without having to get FDA approval. This is about the length of the typical buying cycle I believe. So right around now is when we should start to see the big orders start to roll in. There is very little stock float in the public for this company. Sep- racor owns 64% and Tudor Investment (a hedge fund I believe) owns 10%. That just leaves about 2.1 mm shares. Any bit of good news will drive this stock price up big time.

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