Guilford Perks Up
Does this biotech have a blockbuster Parkinson's drug?
Not many biotech names have come up of late to capture the Street's fancy. But
some pros have plucked one that they think owns a potential blockbuster drug:
Guilford Pharmaceuticals (GLFD), whose therapeutic and diagnostic agents
focus on a range of neurological diseases, including Alzheimer's and Parkinson's.
Its stock, which had been languishing at around 13 a share since mid-April,
suddenly perked up in mid-July, to 16. It has since climbed to 19.
The reason: Its new drug NIL-A, a novel nerve-regeneration compound that
may be useful in treating Parkinson's disease, showed good results in preliminary
clinical trials and was all set for a major Phase 2 trial.
True enough, on Aug. 7, biotech leader Amgen, Guilford's strategic partner on
NIL-A, announced that it had begun a Phase 2 clinical trial to evaluate the safety
and effectiveness of the drug. The trial may enroll some 400 patients.
''NIL-A has tremendous potential and could be a blockbuster if the human
results are anywhere near the animal models in previous trials,'' says Stefan
Loren of Legg Mason Wood Walker, an investment bank with expertise on
biotechs. The analyst figures that NIL-A has the potential to produce $1 billion
in annual sales. He says Guilford's neuroscience pipeline remains strong, and that
Amgen has obtained the license for Guilford's 10 different new drugs, including
one for Alzheimer's. He expects a strong flow of news about NIL-A and
Guilford's other new drugs this year and in 2001. His 12-to-18-month target for
the stock: 45.
Analyst Matt Geller of CIBC World Markets is impressed by Guilford's
neurological compounds. ''They have the potential to revolutionize the treatment
of neurological disorders,'' says Geller, who rates the stock a ''strong buy.''
By GENE G. MARCIAL |
