WFHC, here is some valuable information from revshark of supertraders
Here are the details on WFHC:
GRUN: Gruntal & Co. WFHC- Reiterate 1-1 Rating
10:33am EDT 27-Sep-01 Gruntal & Co WFHC
Page 1
Gruntal & Co. L.L.C. Equity Research Note
September 27, 2001
Jeffrey J. Kraws (212) 820-3604 njgolf1@yahoo.com
Karen B. Feinberg (212) 820-3617 kfeinber@yahoo.com
Garry I.G. Parton (212) 820-3623 partongig@aol.com
John V. Moran (212) 820-3483 johnvmoran@yahoo.com
Company: Women First HealthCare,Inc.#+ WFHC-$8.50a/o 7:45a.m.EDT
Industry: Pharmaceutical
Intermediate Rating: 1-Outperformer Target Price: $14
Long Term Rating: 1-Outperformer Target Price: $18
Suitability: Aggressive Risk
WOMEN FIRST HEALTHCARE, INC. ACQUIRES RIGHTS TO DEVELOPMENT-STAGE
PRESCRIPTION PRENATAL VITAMIN SOFTGEL AS PART OF TERMINATION OF
ESSENTIA PHARMACEUTICALS, INC. COPROMOTION AGREEMENT; REITERATE 1-
1 RATING.
* Women First HealthCare, Inc. announced today that closely
held Essentia Pharmaceuticals has sent them a notice of their
intent to cease operations in North America. This has caused a
previously announced copromotion agreement between Women First
HealthCare, Inc. and St. Louis-based Essentia Pharmaceuticals to
terminate effective today. Women First HealthCare, Inc. announced
the two-year copromotion agreement with Essentia Pharmaceuticals,
Inc. in April 2001, whereby Essentia's 50-person sales force was
to detail Women First HealthCare, Inc.'s estrogen replenishment
products-Ortho-Est Tablets and Esclim estradiol transdermal
system-to general and family practice physicians throughout
Essentia's territories in the U.S. The revenue generated by this
agreement was subject to sharing between the parties on a pre-
established base line.
* As part of today's termination agreement between Essentia
Pharmaceuticals and Women First HealthCare, Inc., the two
companies have entered into certain arrangements to satisfy
Essentia Pharmaceuticals contractual obligations whereby Banner
Pharmacaps, Inc., an affiliate of Essentia Pharmaceuticals, has
agreed to develop a proprietary new prescription prenatal vitamin
product in softgel form for Women First HealthCare, Inc. without
payment of a development fee to Banner. Women First HealthCare,
Inc. will contract with Banner Pharmacaps, Inc., for the
manufacturing of the product.
* This product is expected to be available for sale toward the
end of 2002, and will become part of a total market for prenatal
vitamins estimated at $170 million in the U.S. Banner Pharmacaps,
Inc., is one of the world's leading producers of encapsulated
pharmaceutical and nutritional products. Also, Women First
HealthCare, Inc. and Banner Pharmacaps, Inc., have collectively
stated that the two companies could potentially enter discussions
that may lead to an expanded collaboration and/or broader
exclusivity rights subject to mutual agreement on terms.
* IMPORTANTLY, Women First HealthCare, Inc. has announced that
it intends to pursue a replacement company who can assist in the
detailing of its two estrogen replenishment products. The company
has also stated that with regard to the impact on earnings, the
termination and settlement of the copromotion agreement is not
expected to reduce third quarter earnings, though that fourth
quarter and full year 2002 could see a small negative impact to
earnings if the company does not find a replacement sales force
with which to market its estrogen replenishment products or
acquire additional new products.
* We believe that Women First HealthCare, Inc. will continue
with its plan of aggressively pursuing product and/or business
acquisitions that are accretive to earnings. We also believe that
the company is likely to be able to add another quality
copromotion partner over the next three to six months should it
desire to do so. If either of the two aforementioned events takes
place, any modest negative earnings impact would likely be
eliminated. At this time, we are not revising our forecasts as we
maintain our view that the company should be able to replace this
partner with either additional products and/or a new partner.
Furthermore, gaining a product with significant potential and
value is quite positive for an early-stage specialty
pharmaceutical company.
* We continue to expect Women First HealthCare, Inc. to
achieve a host of near-term milestones that could serve as
catalysts for share price appreciation. These include: (1)
achieving profitability; (2) implementing a physician education
marketing program to position Esclim as the preferred product in
its therapeutic category; (3) contracting aggressively to
increase Ortho-Est sales and market share in the `natural'
estrogen category; (4) acquiring prescription products within the
categories of hormone replacement, pain management and infection
control (primarily vaginal); and (5) completing the ongoing Phase
IV trial for Esclim to position the product even more favorably
among the estrogen patch market.
* We maintain our loss per-share forecast for 2001 of $0.19,
and our 2002 through 2006 earnings per share (EPS) estimates of
$0.19, $0.80, $1.35, $1.38, and $1.57, respectively. Our target
prices remain $14 and $18 for the intermediate- and long-term,
respectively. We reiterate our 1-1, Outperformer rating on the
stock for investors with aggressive risk suitability.
Annual Dividend: - PE FY 01E: NM
Yield: - PE FY 02E: 44.7x
2000 Bk. Value/sh: $0.86 52-WK Range: $11.84-$0.44
2000 ROC: NM 2000 Cash flow/sh: ($1.32)
Inst. Hldgs: 25.1% 5yr est.EPS ann. Growth rate: NM
Insider Hldgs: 46.5% Shares Outstanding (Mil): 22.4
Next Reporting Date (est): Nov. 13 Market Cap (Mil): $190.4
Year End: Dec. 31 Float (Mil): 8.2
EPS($)** Q1 Q2 Q3 Q4 Year Consensus
2000A (0.46) (0.61) (0.15) (0.08) ($1.29) NE
2001E (0.05)A (0.08)A (0.06) 0.01 ($0.19) NE
2002E (0.01) 0.00 0.06 0.14 $0.19 NE
2003E - - - - $0.80 NE
2004E - - - - $1.35 NE
2005E - - - - $1.38 NE
2006E - - - - $1.57 NE
**Estimates may not add due to rounding.
Rev($00) Q1 Q2 Q3 Q4 Year
2000A 7,519 5,826 7,350 6,390 $27,085
2001E 7,108A 5,557A 6,050 7,650 $26,365
2002E 7,500 8,500 11,000 14,750 $41,750
2003E - - - - $65,710
2004E - - - - $88,348
2005E - - - - $102,389
2006E - - - - $127,811
COMPANY DESCRIPTION
Women First HealthCare, Inc. is a specialty pharmaceutical
company, founded in 1996, whose primary focus is to provide
pharmaceutical and lifestyle products for midlife women and to
help these women and their clinicians make informed choices
concerning appropriate health care. The company is specifically
targeted toward women age 40 and over to facilitate their
transition from perimenopause through postmenopause. With
headquarters in San Diego, California, the company employs 140
people, including 60 sales specialists. |
