FBR Expands Coverage of Genomics Sector
fbrcorp.com
Coverage Initiated on Human Genome Sciences, Millennium Pharmaceuticals
Arlington, Va., October 2, 2001 — Friedman, Billings, Ramsey & Co., Inc., a subsidiary of Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR), today initiated coverage of Human Genome Sciences (Nasdaq: HGSI) with an “Underperform” rating and Millennium Pharmaceuticals (Nasdaq: MLNM) with an “Accumulate” rating.
In a 19-page report, Senior Healthcare Analyst Jonathan M. Aschoff, Ph.D., identified Human Genome Sciences as a company engaged in discovery and development of novel compounds based on the identification and study of genes, and that the company intends to commercialize them for treating human diseases.
“We believe the least attractive aspect of HGSI resides in its current clinical pipeline, primarily with our expectations of efficacy for Repifermin, Mirostipen, and BLyS. We are also skeptical about the prospects for albumin-linked drugs, specifically with regard to their actual competitive advantages in the marketplace years from now,” Dr. Aschoff said.
In a 24-page report, Dr. Aschoff identified Millennium Pharmaceuticals as a company that incorporates large-scale genetics and high-throughput screening and informatics in an integrated platform in order to discover and develop proprietary therapeutic and diagnostic human healthcare products and services.
“In our view, MLNM’s technology is more implemental and is applied using a better business strategy than HGSI’s, yet garners a lower valuation. Additionally, MLNM’s 2002 revenue multiple is almost 50 times less than that for HGSI,” Dr. Aschoff said.
HGSI closed last night at $31.13 per share and MLNM closed at $18.29 per share. |
