Hi Julian,
Nice press release. Looks like some of the 800,000
additional patients annually for other conditions affecting
the retina mentioned by CC in her report might come QLT's
way.
Also very nice coverage in the Daily Online Barron's feature story.
In addition to Teva Capital, CIBC World Markets also expects full FDA Visudyne approval any day now.
Ian.
+++++++++++++++++
Whole story at: interactive.wsj.com
...
Another choice: QLT PhotoTherapeutics.
The Vancouver, British Columbia-based company has received an
"approvable" letter from the FDA for Visudyne, a therapy to treat the leading
cause of blindness in people over age 50, the wet form of age-related macular
degeneration. Matthew Geller, an analyst at CIBC World Markets, believes
the product could receive final clearance any day and could eventually
generate sales of $1 billion, which would be shared with its development
partner, Novartis.
"It serves a critical need," says Jordan
Schreiber, manager of the Merrill
Lynch Healthcare Fund, which holds
the stock. "Patient demand will [drive]
sales."
QLT is expected to become profitable
next year. At 55 late Tuesday
afternoon, the stock was trading at 44
times First Call's consensus 2002
estimate of $1.26 per share. While
lofty, that multiple is actually a discount
to the 103% earnings growth First Call projects between 2001 and 2002.
And the stock is about 36% off its 52-week high of 85 3/4, set in January.
Geller thinks the company, which has a market capitalization of $3.7 billion,
can grow to a market cap of $7 billion to $8 billion in the next year or two --
or around 25 times the $306 million in operating revenue he expects QLT to
generate in 2003.
Of course, either of these companies' products could still fail. But because
they already have reached late stages of development, that prospect is
diminished -- and that's what distinguishes them from the masses of other
biotechnology firms out there. |
