MDCO: Medicines Company Message Board

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Biotech / Medical : MDCO: Medicines Company

MDCO 84.90

0.0%

Jan 6 4:00 PM EST

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To: tuck who wrote (34)	1/13/2003 12:53:11 AM
From: Mike	Read Replies (1) of 125

Tuck, Here is the link to the JP Morgan conference from Jan 7,2003. At this conference they start to discuss some of the Replace 2 cost savings. mapdigital.com On slide 25 you will see some of the cost savings analysis of Heparin with 2b/3a use. This is compared to Angiomax with provisional use of a 2b/3a. This showed over a $400 savings per patient with use of Angiomax and provisional us of 2b/3a's. Once the data is released it will have subset analysis that show the "entire" cost savings. This will be higher than the current savings of $400 per pt treated with Angiomax. Additional savings will be compiled to see if there is any additional length of stay or other additional costs. Now based on discussions with many people in the field I have heard the following. In the subset analysis it will look at what were the results in a head to head comparison of Integrilin and Reopro. It has been indicated that during the Replace 2 trial Angiomax will show equivalence to Heparin and Reopro. Angiomax alone will show superiority to Heparin and Integrilin. Now remember I dont want to start a fight with all the Integrilin investors. I am only reporting what I have heard in the field. This initial data is to be published in the next two weeks in JAMA. Remember none of this information has been confirmed thru MDCO management. I am also not sure if the JAMA article will have this subset analysis. But if not then it will be presented at ACC in March in Chicago. On slide 26 you see some of the future plan of action. First is the publication in JAMA. The company did not discuss the specific journal. Four meetings MDCO will be presenting further data sets. The last meeting on March 29 in Chicago for the ACC subset analysis will be presented. Lastly is the information on surrounding the manufacturing cost of Angiomax. You asked: "Also, there was talk of a different manufacturing process? Is that happening? Seemed as though the margins were thinner than most drugs, due to expense, royalty to BGEN, etc. If all of this is known and anticipated, it would explain the recent strength. Any stumble and it's back to low teens, IMO." Below is another confernce call that MDCO had on Dec 17. visualwebcaster.com The cost structure of the previous manufacturing process was very expensive. Cost of sales of the Angiomax product was in the range of 37-40%. This included COGS,royalty bearing agreement (with Biogen) and logistics. Now they have a new process to manufacture Angiomax that is call Chemilog process. This is going to bring the cost down to 13-15% during the R&D process. MDCO already has an approval from the FDA for the Chemilog process. They do not have "full" approval. This could come in the next few months. Could be any day. Once full approval comes thru the COGS will be in the 25-28% range. I really think this company could have strong legs in '03. Let me know your thoughts. Mike

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