And from Merrill
Merrill Lynch Global Securities Research (CELG; $27.15; D-2-1-9)
Dec01E $0.30; 02E $0.51
o CELG shares are weak today due, we think, to a letter in the New England
Journal of Medicine describing a high incidence of blood clotting with
Thalidomide. This is not new news and physicians are aware of this.
o The article reported a much greater incidence than other studies reported.
Importantly, all new studies of Thalidomide already include a blood thinner to
prevent this side effect.
o Another potential reason for the stock weakness could be expectations for
the quarter. Sales of Thalidomide have been flat for the past three quarters
but we think they will be slightly better this quarter. We are forecasting
$20mil but think sales could be around $19mil. We are expecting sales of
Thalidomide to accelerate in 2H 01 when all of the good news that was reported
in the past few weeks and further news in upcoming weeks should be incorporated
into the stock.
(I.Fogelman)
(CELG) MLPF&S was a manager of the most recent public offering of securities
of this company within the last three years.
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