RESEARCH ALERT-Morgan Stanley starts 3 biotechs
NEW YORK, June 12 (Reuters) - Morgan Stanley said on Wednesday
it started coverage of three biotechnology companies, setting an
"overweight" rating on Medicines Co. and "equal-weight"
ratings on Regeneron Pharmaceuticals Inc. and Trimeris
Inc.
Analyst Steven Harr also assumed coverage of CV Therapeutics
Inc. at "underweight," suggesting that stock performance
will be "limited" until there is greater certainty about the
approval of ranolazine, an angina drug.
"For investors with a time horizon beyond 12 months, we see
substantial potential upside with FDA (U.S. Food and Drug
Administration) approval," Harr said about CV Therapeutics in a
research note. CV Therapeutics closed Tuesday at $17.40 per
share.
Regarding Medicines Co., Harr said in a research note he expects
revenues of Angiomax, a blood thinner product used in
interventional cardiology, could hit a peak of more than $300
million. Harr set a $19.00 price target on the stock, which
closed at $9 on June 11.
Harr forecast in the research note that Medicines will report
losses of $1.67 per share and $1.21 per share in 2002 and 2003,
respectively.
Harr said Regeneron should "perform in line with the broader
biotech market, but we believe clinical trials from two
late-stage programs could be strong catalysts for the stock in
2003."
Regeneron could benefit from Phase III clinical trials data for
Axokine, an potential obesity treatment, and from Phase II data
for the IL-1 Trap, an experimental rheumatoid arthritis
treatment.
Harr said in a research note that the company is expected to
lose $1.81 per share in 2002 and $2.70 per share in 2003. Shares
of the company closed at $14.36 on June 11.
Trimeris, which is developing experimental anti-viral drugs,
could receive an approval for its T-20 HIV treatment in the first
half of 2003 and it has a peak worldwide sales potential of more
than $500 million. Harr is forecasting Trimeris to record losses
per share of $3.96 in 2002, $4.67 in 2003 and $1.15 a share in
2004.
Trimeris shares traded at $41.17 on June 11. |
